i3 Verticals (NASDAQ:IIIV) vs. Pagaya Technologies (NASDAQ:PGY) Head to Head Survey

Pagaya Technologies (NASDAQ:PGY) and i3 Verticals (NASDAQ:IIIV) are both small-cap technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Valuation and Earnings

This table compares Pagaya Technologies and i3 Verticals”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	$1.33 billion	1.14	$81.39 million	$1.36	13.34
i3 Verticals	$213.16 million	1.86	$17.87 million	$0.38	39.55

Pagaya Technologies has higher revenue and earnings than i3 Verticals. Pagaya Technologies is trading at a lower price-to-earnings ratio than i3 Verticals, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 84.2% of i3 Verticals shares are held by institutional investors. 42.0% of Pagaya Technologies shares are held by company insiders. Comparatively, 60.1% of i3 Verticals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Pagaya Technologies and i3 Verticals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	2	8	2	3.00
i3 Verticals	1	3	3	0	2.29

Pagaya Technologies currently has a consensus target price of $31.12, suggesting a potential upside of 71.58%. i3 Verticals has a consensus target price of $25.40, suggesting a potential upside of 69.00%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Pagaya Technologies is more favorable than i3 Verticals.

Risk and Volatility

Pagaya Technologies has a beta of 5.5, meaning that its stock price is 450% more volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares Pagaya Technologies and i3 Verticals’ 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%
i3 Verticals	4.24%	4.49%	3.31%

Summary

Pagaya Technologies beats i3 Verticals on 11 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 i3 Verticals

i3 Verticals, Inc. provides integrated payment and software solutions primarily to the public sector and healthcare markets in the United States. It operates in two segments, Software and Services, and Merchant Services. The company offers payment processing services that enables upper and lower court case management, collections, finance and accounting, motor vehicle and carrier registration, e-filing and taxation, license plate inventory, property tax management, utility billing, professional licensing, document workflow, and law enforcement software; assists public schools in completing payment processing functions, including accepting payments for online or at school lunches, and school activities. It also provides software platforms, such as electronic healthcare records and revenue cycle management solutions; insurance adjudication, patient engagement platforms, billing, scheduling, and integrated payments solutions; and workflow software and associated professional services to medical insurance payers. In addition, the company engages in software licenses and subscriptions, transaction-based fees, ongoing software maintenance and support, and other software-related solutions; and payment processing and gateway fees, as well as other related fixed transaction or service fees. Further, it sells equipment, and offers non-software related professional services. The company offers its solutions to clients through direct sales force; distribution partners comprising independent software vendors, independent sales organizations, and value-added resellers. i3 Verticals, Inc. was founded in 2012 and is headquartered in Nashville, Tennessee.