Pagaya Technologies (NASDAQ:PGY – Get Free Report) and Cango (NYSE:CANG – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Profitability
This table compares Pagaya Technologies and Cango’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pagaya Technologies | 9.12% | 51.56% | 19.01% |
| Cango | -107.22% | -165.48% | -75.08% |
Analyst Recommendations
This is a breakdown of recent recommendations for Pagaya Technologies and Cango, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pagaya Technologies | 0 | 1 | 8 | 3 | 3.17 |
| Cango | 1 | 1 | 1 | 1 | 2.50 |
Insider and Institutional Ownership
57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 4.2% of Cango shares are held by institutional investors. 42.0% of Pagaya Technologies shares are held by insiders. Comparatively, 29.1% of Cango shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Pagaya Technologies and Cango”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pagaya Technologies | $1.33 billion | 1.11 | $81.39 million | $1.36 | 12.96 |
| Cango | $556.87 million | 0.06 | -$621.95 million | ($23.79) | -0.08 |
Pagaya Technologies has higher revenue and earnings than Cango. Cango 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
Pagaya Technologies has a beta of 5.35, indicating that its stock price is 435% more volatile than the S&P 500. Comparatively, Cango has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
Summary
Pagaya Technologies beats Cango on 14 of the 15 factors compared between the two stocks.
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.
About Cango
Cango Inc. operates an automotive transaction service platform that connects dealers, original equipment manufacturers, financial institutions, car buyers, insurance brokers, and companies in the People's Republic of China. The company offers automobile trading solutions comprising car sourcing, transaction facilitation, logistics, and warehousing support for dealers through Cango Haoche app that offers new car transaction services, and Cango U-Car app that offers used-car transaction services. It also provides automotive financing facilitation services that include facilitating financing transactions from financial institutions to car buyers, which comprises credit origination, credit assessment, credit servicing, and delinquent asset management services; facilitating financing transactions of car purchases for car buyers; and after-market services to car buyers, which includes facilitating the sale of insurance policies from insurance brokers or companies. The company was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.
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