Head to Head Contrast: Pagaya Technologies (NASDAQ:PGY) & Pixelworks (NASDAQ:PXLW)
by Kim Johansen · The Markets DailyPagaya Technologies (NASDAQ:PGY – Get Free Report) and Pixelworks (NASDAQ:PXLW – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 21.4% of Pixelworks shares are held by institutional investors. 42.0% of Pagaya Technologies shares are held by company insiders. Comparatively, 4.7% of Pixelworks shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Pagaya Technologies and Pixelworks”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pagaya Technologies | $1.30 billion | 1.22 | $81.39 million | $1.36 | 14.03 |
| Pixelworks | $690,000.00 | 47.35 | -$22.50 million | ($1.63) | -3.31 |
Pagaya Technologies has higher revenue and earnings than Pixelworks. Pixelworks is trading at a lower price-to-earnings ratio than Pagaya Technologies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Pagaya Technologies and Pixelworks’ 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% |
| Pixelworks | N/A | -28.77% | -14.64% |
Risk and Volatility
Pagaya Technologies has a beta of 5.5, indicating that its stock price is 450% more volatile than the S&P 500. Comparatively, Pixelworks has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Pagaya Technologies and Pixelworks, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pagaya Technologies | 0 | 2 | 8 | 2 | 3.00 |
| Pixelworks | 1 | 0 | 1 | 0 | 2.00 |
Pagaya Technologies presently has a consensus price target of $31.12, indicating a potential upside of 63.13%. Pixelworks has a consensus price target of $12.00, indicating a potential upside of 122.22%. Given Pixelworks’ higher possible upside, analysts plainly believe Pixelworks is more favorable than Pagaya Technologies.
Summary
Pagaya Technologies beats Pixelworks on 13 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 Pixelworks
Pixelworks, Inc., together with its subsidiaries, develops and markets semiconductor and software solutions for mobile, home and enterprise, and cinema markets in the United States, Japan, China, Taiwan, Korea, and Europe. The company offers imageprocessor integrated circuits, such as embedded microprocessors, digital signal processing technology, and software that control the operations and signal processing within high-end display systems; visual processor integrated circuits that works with a mobile application processor; and transcoder integrated circuits which includes software that control the operations and signal processing for converting multiple bitrates, resolutions and codecs to provide bandwidth efficient video transmissions based on industry standard protocols. It also provides software and platform licensing products comprising Pixelworks Pro Software, a software that enables development and customize the look and feel of mobile products by use of various features, such as absolute color accuracy, HDR tone mapping, SDR-to-HDR conversion, and others; and TrueCut Motion Platform, content creation tool which provides the ability to dial in a motion look on a shot-by-shot basis. The company distributes its products to integrators, branded manufacturers, and branded suppliers. Pixelworks, Inc. was founded in 1997 and is based in Portland, Oregon.