Pagaya Technologies (NASDAQ:PGY) vs. Freedom (NASDAQ:FRHC) Head-To-Head Contrast

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

Volatility & Risk

Freedom has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 5.32, suggesting that its share price is 432% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freedom	$2.19 billion	4.54	$153.33 million	$2.51	64.63
Pagaya Technologies	$1.30 billion	1.13	$81.39 million	$1.07	16.63

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

Analyst Recommendations

This is a summary of current ratings for Freedom and Pagaya Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freedom	0	2	0	0	2.00
Pagaya Technologies	0	1	7	3	3.18

Freedom presently has a consensus target price of $138.00, suggesting a potential downside of 14.93%. Pagaya Technologies has a consensus target price of $35.86, suggesting a potential upside of 101.56%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Pagaya Technologies is more favorable than Freedom.

Institutional & Insider Ownership

1.3% of Freedom shares are held by institutional investors. Comparatively, 57.1% of Pagaya Technologies shares are held by institutional investors. 70.0% of Freedom shares are held by company insiders. Comparatively, 47.6% of Pagaya Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freedom	7.00%	11.50%	1.35%
Pagaya Technologies	7.39%	44.75%	15.97%

Summary

Pagaya Technologies beats Freedom on 9 of the 15 factors compared between the two stocks.

About Freedom

Freedom Holding Corp., through its subsidiaries, provides securities brokerage, securities dealing, market making, investment research, investment counseling, and investment banking services. It offers retail brokerage services for exchange-traded and over-the-counter corporate equity and debt securities, money market instruments, exchange traded options and futures contracts, government bonds, and mutual funds; securities trading; underwriting services; margin lending services collateralized by securities and cash in the customer’s account; various investment education and training courses; investment research services; and commercial banking services, including payment cards, digital mortgages, and digital business and digital auto loans, as well as Freedom Box, a package of payment acquiring services. The company also provides capital raising solutions for corporate clients through initial public offerings and follow-on offerings; and debt capital markets solutions that focuses on structuring and distributing private and public debt for various purposes, including buyouts, acquisitions, growth capital financings, and recapitalizations, as well as information processing services. In addition, it facilitates repurchase and reverse repurchase agreements in proprietary trading activities; and covers short positions and settle other securities obligations to accommodate customers’ needs and finance its inventory positions. Further, the company offers proprietary trading and investment services, as well as insurance products; and Tradernet software platform for client margin risk evaluation and middle office security transfer requests. It operates in Central Asia, Eastern Europe, rest of Europe, the United States, Russia, the Middle East, and Caucasus. The company was formerly known as BMB Munai, Inc. and changed its name to Freedom Holding Corp. Freedom Holding Corp. was incorporated in 1981 and is headquartered in Almaty, Kazakhstan.

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.