Mr. Cooper Group (NASDAQ:COOP – Get Rating) and Pagaya Technologies (NASDAQ:PGY – Get Rating) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Insider and Institutional Ownership
83.9% of Mr. Cooper Group shares are held by institutional investors. Comparatively, 22.6% of Pagaya Technologies shares are held by institutional investors. 2.6% of Mr. Cooper Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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Analyst Recommendations
This is a summary of current ratings for Mr. Cooper Group and Pagaya Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Mr. Cooper Group | 0 | 2 | 2 | 0 | 2.50 |
| Pagaya Technologies | 0 | 5 | 0 | 0 | 2.00 |
Mr. Cooper Group presently has a consensus target price of $55.80, suggesting a potential upside of 27.60%. Pagaya Technologies has a consensus target price of $3.65, suggesting a potential upside of 296.74%. Given Pagaya Technologies' higher probable upside, analysts plainly believe Pagaya Technologies is more favorable than Mr. Cooper Group.
Profitability
This table compares Mr. Cooper Group and Pagaya Technologies' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Mr. Cooper Group | 38.66% | 6.35% | 1.81% |
| Pagaya Technologies | N/A | -14.30% | -8.25% |
Valuation and Earnings
This table compares Mr. Cooper Group and Pagaya Technologies' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Mr. Cooper Group | $3.32 billion | 0.93 | $1.45 billion | $14.18 | 3.08 |
| Pagaya Technologies | $474.59 million | 1.27 | -$91.15 million | N/A | N/A |
Mr. Cooper Group has higher revenue and earnings than Pagaya Technologies.
Volatility & Risk
Mr. Cooper Group has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Pagaya Technologies has a beta of 8.95, indicating that its stock price is 795% more volatile than the S&P 500.
Summary
Mr. Cooper Group beats Pagaya Technologies on 9 of the 12 factors compared between the two stocks.
About Mr. Cooper Group
(Get Rating)
Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related to single-family residences in the United States. The company operates through two segments: Servicing and Originations. The Servicing segment performs activities for underlying mortgages, including collecting and disbursing borrower payments, investor reporting, customer service, and modifying loans. The Originations segment originates residential mortgage loans through its direct-to-consumer channel, as well as originates and purchases loans from mortgage bankers and brokers. It operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.
About Pagaya Technologies
(Get Rating)
Pagaya Technologies Ltd. operates as a financial technology company in Israel, the United States, and the Cayman Islands. It 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 financial institutions, auto finance providers, and brokers. The company was founded in 2016 and is headquartered in Tel Aviv, Israel.
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