Dassault Systemes (OTCMKTS:DASTY) versus Pagaya Technologies (NASDAQ:PGY) Critical Analysis
by Kim Johansen · The Markets DailyPagaya Technologies (NASDAQ:PGY – Get Free Report) and Dassault Systemes (OTCMKTS:DASTY – Get Free Report) are both technology companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.
Profitability
This table compares Pagaya Technologies and Dassault Systemes’ 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% |
| Dassault Systemes | 21.32% | 18.65% | 10.91% |
Volatility and Risk
Pagaya Technologies has a beta of 5.5, indicating that its share price is 450% more volatile than the S&P 500. Comparatively, Dassault Systemes has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Insider & Institutional Ownership
57.1% of Pagaya Technologies shares are owned by institutional investors. Comparatively, 0.0% of Dassault Systemes shares are owned by institutional investors. 42.0% of Pagaya Technologies shares are owned by 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 breakdown of current ratings and price targets for Pagaya Technologies and Dassault Systemes, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pagaya Technologies | 0 | 2 | 8 | 2 | 3.00 |
| Dassault Systemes | 1 | 5 | 0 | 1 | 2.14 |
Pagaya Technologies currently has a consensus target price of $31.25, indicating a potential upside of 79.19%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Pagaya Technologies is more favorable than Dassault Systemes.
Valuation and Earnings
This table compares Pagaya Technologies and Dassault Systemes”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 | $1.30 billion | 1.12 | $81.39 million | $1.36 | 12.82 |
| Dassault Systemes | $7.05 billion | 4.40 | $1.35 billion | $1.13 | 20.46 |
Dassault Systemes has higher revenue and earnings than Pagaya Technologies. Pagaya Technologies is trading at a lower price-to-earnings ratio than Dassault Systemes, indicating that it is currently the more affordable of the two stocks.
Summary
Pagaya Technologies beats Dassault Systemes on 10 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 Dassault Systemes
Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.