Critical Comparison: Docebo (NASDAQ:DCBO) versus Pagaya Technologies (NASDAQ:PGY)

Pagaya Technologies (NASDAQ:PGY) and Docebo (NASDAQ:DCBO) are both small-cap technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares Pagaya Technologies and Docebo”s 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	1.23	$81.39 million	$1.65	11.65
Docebo	$242.69 million	3.06	$37.51 million	$1.14	26.03

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

Risk & Volatility

Pagaya Technologies has a beta of 5.5, indicating that its share price is 450% more volatile than the S&P 500. Comparatively, Docebo has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Pagaya Technologies and Docebo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pagaya Technologies	10.77%	52.60%	19.41%
Docebo	12.98%	120.29%	16.26%

Analyst Ratings

This is a summary of current recommendations and price targets for Pagaya Technologies and Docebo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	2	8	2	3.00
Docebo	0	4	9	1	2.79

Pagaya Technologies presently has a consensus target price of $31.62, suggesting a potential upside of 64.46%. Docebo has a consensus target price of $30.30, suggesting a potential upside of 2.12%. Given Pagaya Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Pagaya Technologies is more favorable than Docebo.

Insider and Institutional Ownership

57.1% of Pagaya Technologies shares are owned by institutional investors. Comparatively, 53.2% of Docebo shares are owned by institutional investors. 42.0% of Pagaya Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Pagaya Technologies beats Docebo 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 Docebo

Docebo Inc. operates as a learning management software company that provides artificial intelligence (AI)-powered learning platform in North America and internationally. It offers Learning Management System (LMS) to train internal and external workforces, partners, and customers. The company's cloud platform consists of a learning suite, which includes Docebo Learn LMS, a cloud-based learning platform that allows learning administrators to deliver personalized learning; Docebo Shape, an AI-based learning content creation tool, which enables learning administrators to turn internal and external resources into engaging, multilingual, and microlearning content to share across the business; Docebo Content that allows off-the-shelf learning content by partnering content specialist; Docebo Learning Impact, a learning measurement tool that enables administrators to prove and improve training programs; Docebo Learn Data, which gives a comprehensive view on learning data to business results; Docebo Connect that connects Docebo to custom tech stack and making integrations; and Docebo Flow that allows businesses to directly inject learning into the flow of work. It also offers Docebo for Salesforce, a native integration that leverages Salesforce's application programming interface and technology architecture to produce a learning experience; Docebo Embed that allows original equipment manufacturers to embed and re-sell Docebo as a part of their software; Docebo Mobile App Publisher product that allows companies to create and publish own branded version of Docebo Go.Learn mobile learning applications; Docebo Extended Enterprise which breeds customer education, partner enablement, and retention; Docebo Discover, Coach & Share that enhances the learning experience to create a culture of social learning; and Docebo for Microsoft Teams, that brings learning directly into Microsoft Teams. The company was founded in 2005 and is headquartered in Toronto, Canada.