Oportun Financial (NASDAQ:OPRT – Get Free Report) and Pagaya Technologies (NASDAQ:PGY – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Valuation & Earnings
This table compares Oportun Financial and Pagaya Technologies’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oportun Financial | $952.50 million | 0.21 | -$77.74 million | ($6.87) | -0.85 |
| Pagaya Technologies | $748.93 million | 1.14 | -$302.32 million | ($0.29) | -4.14 |
Oportun Financial has higher revenue and earnings than Pagaya Technologies. Pagaya Technologies is trading at a lower price-to-earnings ratio than Oportun Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Oportun Financial | -22.27% | -18.22% | -2.59% |
| Pagaya Technologies | -26.78% | -11.21% | -7.65% |
Volatility & Risk
Oportun Financial has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 7.87, suggesting that its share price is 687% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Oportun Financial and Pagaya Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oportun Financial | 0 | 3 | 4 | 0 | 2.57 |
| Pagaya Technologies | 0 | 2 | 4 | 0 | 2.67 |
Oportun Financial currently has a consensus target price of $7.93, indicating a potential upside of 36.46%. Pagaya Technologies has a consensus target price of $3.35, indicating a potential upside of 179.17%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Pagaya Technologies is more favorable than Oportun Financial.
Insider and Institutional Ownership
73.7% of Oportun Financial shares are owned by institutional investors. Comparatively, 57.1% of Pagaya Technologies shares are owned by institutional investors. 10.2% of Oportun Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Oportun Financial beats Pagaya Technologies on 7 of the 13 factors compared between the two stocks.
About Oportun Financial
Oportun Financial Corporation provides financial services. It offers personal loans and credit cards. The company serves customers through online and over-the-phone, as well as through retail and Lending as a Service partner locations. Oportun Financial Corporation was founded in 2005 and is headquartered in San Carlos, California.
About Pagaya Technologies
Pagaya Technologies Ltd. operates as a financial technology company in Israel, the United States, and internationally. It primarily develops and implements proprietary artificial intelligence technology and related software solutions to assist partners to originate loans and other assets. The company's 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 Tel Aviv, Israel.
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