Critical Comparison: Finward Bancorp (NASDAQ:FNWD) vs. Pagaya Technologies (NASDAQ:PGY)

Pagaya Technologies (NASDAQ:PGY) and Finward Bancorp (NASDAQ:FNWD) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Pagaya Technologies and Finward Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	1	8	0	2.89
Finward Bancorp	0	1	1	0	2.50

Pagaya Technologies currently has a consensus price target of $34.33, suggesting a potential downside of 6.91%. Finward Bancorp has a consensus price target of $32.50, suggesting a potential upside of 1.56%. Given Finward Bancorp’s higher probable upside, analysts plainly believe Finward Bancorp is more favorable than Pagaya Technologies.

Profitability

This table compares Pagaya Technologies and Finward Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pagaya Technologies	-24.36%	19.14%	6.79%
Finward Bancorp	5.23%	3.45%	0.26%

Valuation & Earnings

This table compares Pagaya Technologies and Finward Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pagaya Technologies	$1.03 billion	2.74	-$401.41 million	($3.83)	-9.63
Finward Bancorp	$111.82 million	1.24	$12.13 million	$1.24	25.81

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

Risk & Volatility

Pagaya Technologies has a beta of 5.96, suggesting that its share price is 496% more volatile than the S&P 500. Comparatively, Finward Bancorp has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 26.6% of Finward Bancorp shares are held by institutional investors. 47.6% of Pagaya Technologies shares are held by company insiders. Comparatively, 5.2% of Finward Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Pagaya Technologies beats Finward Bancorp on 9 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 Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.