Critical Comparison: Abits Group (NASDAQ:ABTS) vs. Pagaya Technologies (NASDAQ:PGY)

Pagaya Technologies (NASDAQ:PGY) and Abits Group (NASDAQ:ABTS) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Profitability

This table compares Pagaya Technologies and Abits Group’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%
Abits Group	N/A	N/A	N/A

Institutional & Insider Ownership

57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 0.2% of Abits Group shares are held by institutional investors. 49.6% of Pagaya Technologies shares are held by insiders. Comparatively, 6.7% of Abits Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Pagaya Technologies and Abits Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pagaya Technologies	$812.05 million	1.18	-$128.44 million	($2.54)	-5.12
Abits Group	$1.68 million	9.53	-$12.59 million	N/A	N/A

Abits Group has lower revenue, but higher earnings than Pagaya Technologies.

Analyst Recommendations

This is a summary of recent recommendations for Pagaya Technologies and Abits Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	2	7	0	2.78
Abits Group	0	0	0	0	0.00

Pagaya Technologies currently has a consensus price target of $20.06, indicating a potential upside of 54.15%. Given Pagaya Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Pagaya Technologies is more favorable than Abits Group.

Volatility and Risk

Pagaya Technologies has a beta of 6.09, indicating that its share price is 509% more volatile than the S&P 500. Comparatively, Abits Group has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500.

Summary

Pagaya Technologies beats Abits Group on 9 of the 12 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 Abits Group

Abits Group Inc. operates in the bitcoin mining business in the United States. The company was formerly known as Moxian (BVI) Inc and changed its name to Abits Group Inc. in November 2023. Abits Group Inc. was incorporated in 2021 and is based in Causeway Bay, Hong Kong.