Abits Group (NASDAQ:ABTS) versus Pagaya Technologies (NASDAQ:PGY) Critical Analysis

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

Profitability

This table compares Abits Group and Pagaya Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Abits Group	N/A	N/A	N/A
Pagaya Technologies	-18.48%	1.01%	0.47%

Analyst Ratings

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

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

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

Insider & Institutional Ownership

0.2% of Abits Group shares are owned by institutional investors. Comparatively, 57.1% of Pagaya Technologies shares are owned by institutional investors. 6.7% of Abits Group shares are owned by insiders. Comparatively, 49.6% of Pagaya Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

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

Valuation and Earnings

This table compares Abits Group and Pagaya Technologies”s gross revenue, earnings per share (EPS) and valuation.

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

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

Summary

Pagaya Technologies beats Abits Group on 9 of the 12 factors compared between the two stocks.

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.

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.