Contrasting CLEAR Secure (NYSE:YOU) and Pagaya Technologies (NASDAQ:PGY)

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

Volatility and Risk

Pagaya Technologies has a beta of 5.66, indicating that its share price is 466% more volatile than the S&P 500. Comparatively, CLEAR Secure has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Pagaya Technologies and CLEAR Secure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pagaya Technologies	0	2	8	2	3.00
CLEAR Secure	1	3	5	0	2.44

Pagaya Technologies presently has a consensus target price of $31.62, indicating a potential upside of 64.46%. CLEAR Secure has a consensus target price of $58.29, indicating a potential upside of 26.74%. Given Pagaya Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Pagaya Technologies is more favorable than CLEAR Secure.

Profitability

This table compares Pagaya Technologies and CLEAR Secure’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%
CLEAR Secure	14.78%	71.51%	10.90%

Insider & Institutional Ownership

57.1% of Pagaya Technologies shares are held by institutional investors. Comparatively, 73.8% of CLEAR Secure shares are held by institutional investors. 42.0% of Pagaya Technologies shares are held by insiders. Comparatively, 29.7% of CLEAR Secure shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Pagaya Technologies and CLEAR Secure”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	1.23	$81.39 million	$1.65	11.65
CLEAR Secure	$900.78 million	6.91	$109.17 million	$1.47	31.29

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

Summary

Pagaya Technologies beats CLEAR Secure on 9 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 CLEAR Secure

Clear Secure, Inc. operates a secure identity platform under the CLEAR brand name primarily in the United States. Its secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking, as well as back-end. The company also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR mobile app, which is used to enroll new members and improve the experience for existing members. In addition, it provides RESERVE powered by CLEAR, a virtual queuing technology that provides users with the ability to book a dedicated time slot to go through security at the airport; CLEAR Verified, a B2B offering that extends secure identity platform to partners to create friction-free experiences for their customers; TSA PreCheck Enrollment Provided by CLEAR, as well as online renewal services; Atlas Certified, an automated solution to verify professional licenses and certification data across industries; and Sora ID that enables adding know your customer services to platform offerings, as well as virtual queuing technology that enables customers to manage lines. The company was founded in 2010 and is headquartered in New York, New York. Clear Secure, Inc. is a subsidiary of Alclear Investments, Llc.