Velocity Financial (VEL) Competitors

Pagaya Technologies (NASDAQ:PGY) and Velocity Financial (NYSE:VEL) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, media sentiment, dividends, profitability and analyst recommendations.

Do analysts rate PGY or VEL?

Pagaya Technologies currently has a consensus price target of $34.33, indicating a potential upside of 2.43%. Velocity Financial has a consensus price target of $21.33, indicating a potential upside of 12.28%. Given Velocity Financial's higher probable upside, analysts plainly believe Velocity Financial is more favorable than Pagaya Technologies.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0 Sell rating(s)	1 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.89
Velocity Financial	1 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.33

Is PGY or VEL more profitable?

Velocity Financial has a net margin of 51.11% compared to Pagaya Technologies' net margin of -24.36%. Pagaya Technologies' return on equity of 19.14% beat Velocity Financial's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Pagaya Technologies	-24.36%	19.14%	6.79%
Velocity Financial	51.11%	15.89%	1.49%

Which has better valuation and earnings, PGY or VEL?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pagaya Technologies	$1.13B	2.26	-$401.41M	-$3.83	-8.75
Velocity Financial	$253.03M	2.89	$68.42M	$2.21	8.60

Do institutionals & insiders have more ownership in PGY or VEL?

57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 97.5% of Velocity Financial shares are held by institutional investors. 47.6% of Pagaya Technologies shares are held by insiders. Comparatively, 4.6% of Velocity Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Which has more volatility & risk, PGY or VEL?

Pagaya Technologies has a beta of 5.95, meaning that its share price is 495% more volatile than the S&P 500. Comparatively, Velocity Financial has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Does the media favor PGY or VEL?

In the previous week, Pagaya Technologies had 13 more articles in the media than Velocity Financial. MarketBeat recorded 20 mentions for Pagaya Technologies and 7 mentions for Velocity Financial. Pagaya Technologies' average media sentiment score of 0.51 beat Velocity Financial's score of 0.25 indicating that Pagaya Technologies is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Pagaya Technologies	5 Very Positive mention(s)	4 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Velocity Financial	0 Very Positive mention(s)	0 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

Pagaya Technologies beats Velocity Financial on 9 of the 16 factors compared between the two stocks.