MDB Capital (NASDAQ:MDBH) vs. Pagaya Technologies (NASDAQ:PGY) Critical Comparison

MDB Capital (NASDAQ:MDBH) and Pagaya Technologies (NASDAQ:PGY) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for MDB Capital and Pagaya Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDB Capital	0	0	0	0	0.00
Pagaya Technologies	0	2	7	0	2.78

Pagaya Technologies has a consensus target price of $20.61, indicating a potential upside of 82.24%. Given Pagaya Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Pagaya Technologies is more favorable than MDB Capital.

Earnings and Valuation

This table compares MDB Capital and Pagaya Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDB Capital	$1.30 million	46.11	-$6.97 million	($2.87)	-2.25
Pagaya Technologies	$1.00 billion	0.83	-$401.41 million	($5.50)	-2.06

MDB Capital has higher earnings, but lower revenue than Pagaya Technologies. MDB Capital is trading at a lower price-to-earnings ratio than Pagaya Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

MDB Capital has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 5.98, suggesting that its share price is 498% more volatile than the S&P 500.

Profitability

This table compares MDB Capital and Pagaya Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDB Capital	N/A	-75.31%	-63.59%
Pagaya Technologies	-39.20%	0.82%	0.36%

Insider and Institutional Ownership

0.3% of MDB Capital shares are held by institutional investors. Comparatively, 57.1% of Pagaya Technologies shares are held by institutional investors. 55.5% of MDB Capital shares are held by insiders. Comparatively, 49.6% of Pagaya Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pagaya Technologies beats MDB Capital on 9 of the 14 factors compared between the two stocks.

About MDB Capital

MDB Capital Holdings, LLC, through its subsidiaries, primarily operates as a broker-dealer. The company operates through two segments, Broker Dealer & Intellectual Property Service, and Technology Development. The Broker Dealer & Intellectual Property Service segment operates as a full-service broker dealer that focuses on conducting private and public securities offerings, as well as providing research services for investment banking due diligence. The Technology Development segment engages in the synthetic biology technology development business. The company was founded in 1997 and is based in Addison, Texas.

About Pagaya Technologies

Pagaya Technologies Ltd., a product-focused technology company, deploys data science and proprietary artificial intelligence-powered technology for financial institutions and investors in the United States, Israel, the Cayman Islands, and internationally. The company develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. Its partners include high-growth financial technology companies, incumbent banks and financial institutions, auto finance providers, and residential real estate service providers. Pagaya Technologies Ltd. was incorporated in 2016 and is headquartered in New York, New York.