Critical Comparison: Security National Financial (NASDAQ:SNFCA) versus Pagaya Technologies (NASDAQ:PGY)

Pagaya Technologies (NASDAQ:PGY) and Security National Financial (NASDAQ:SNFCA) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Valuation and Earnings

This table compares Pagaya Technologies and Security National Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pagaya Technologies	$812.05 million	1.13	-$128.44 million	($2.54)	-4.92
Security National Financial	$318.50 million	1.00	$14.49 million	$1.23	10.69

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

Analyst Recommendations

This is a summary of recent ratings for Pagaya Technologies and Security National Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	2	7	0	2.78
Security National Financial	0	0	0	0	0.00

Pagaya Technologies presently has a consensus price target of $20.06, indicating a potential upside of 60.44%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Pagaya Technologies is more favorable than Security National Financial.

Volatility and Risk

Pagaya Technologies has a beta of 6.09, meaning that its stock price is 509% more volatile than the S&P 500. Comparatively, Security National Financial has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Profitability

This table compares Pagaya Technologies and Security National Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pagaya Technologies	-18.48%	1.01%	0.47%
Security National Financial	8.92%	9.02%	2.02%

Institutional & Insider Ownership

57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 45.6% of Security National Financial shares are held by institutional investors. 49.6% of Pagaya Technologies shares are held by insiders. Comparatively, 12.6% of Security National Financial 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.

Summary

Pagaya Technologies beats Security National Financial on 8 of the 14 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 Security National Financial

Security National Financial Corporation engages in the life insurance, cemetery and mortuary, and mortgage businesses. The company's Life Insurance segment is involved in selling and servicing lines of life insurance, annuity products, and accident and health insurance. It offers various life insurance products, including funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and health insurance products; annuity products comprising single and flexible premium deferred annuities, and immediate annuities; and diver's accident insurance policies. This segment also cedes and assumes various risks with various authorized unaffiliated reinsurers pursuant to reinsurance treaties. Its Cemetery and Mortuary segment operates eight mortuaries and five cemeteries in Utah; one cemetery in California; and four mortuaries and one cemetery in New Mexico. This segment also offers plots, interment vaults, mausoleum crypts, markers, caskets, urns, and other death care related products; and provides professional services of funeral directors, opening and closing of graves, use of chapels and viewing rooms, and use of automobiles and clothing. The company's Mortgages segment originates and underwrites residential and commercial loans for new construction, existing homes, and real estate projects primarily in Florida, Nevada, Texas, and Utah. It offers residential mortgage lending services to real estate brokers and builders, as well as directly with consumers. Security National Financial Corporation was founded in 1965 and is headquartered in Salt Lake City, Utah.