NextNav Inc. (NN) vs Pagaya Technologies Ltd. (PGY)

NextNav Inc. and Pagaya Technologies Ltd. are both Software Infrastructure companies. NextNav Inc. is the larger, with a market value of $1.8B against $1.5B — 1.2× the size. NextNav Inc. has negative trailing earnings, so its P/E is not meaningful; Pagaya Technologies Ltd. trades at 11.5×. Pagaya Technologies Ltd. grew revenue faster over the last twelve months: 20.6% against −36.5%. Pagaya Technologies Ltd. has the higher net margin (9.11% vs −2,812.6%) and the higher return on invested capital (741.9% vs −44.7%). Across the 19 metrics below, Pagaya Technologies Ltd. leads on 16 and NextNav Inc. on 3.

Valuation

Metric NN PGY Software Infrastructure median
P/E n/m 11.49 28.38
P/S 343.30 1.03 2.98
P/B 4.08 2.21 2.93
Price to free cash flow n/m 5.69 16.28
EV/EBITDA n/m 2.66 13.92
EV/Sales 352.94 0.72 2.90
Earnings yield (8.37%) 8.71% 0.14%
Free cash flow yield (3.93%) 17.57% 1.24%

Profitability

Metric NN PGY Software Infrastructure median
Gross margin (104.90%) 43.39% 61.00%
Operating margin (1,900.43%) 24.86% 0.00%
Net margin (2,812.55%) 9.11% 0.00%
Free cash flow margin (1,348.00%) 18.11% 1.67%
Return on equity (77.87%) 22.68% 0.60%
Return on assets (34.64%) 8.19% 0.00%
Return on invested capital (44.71%) 741.93% 0.00%

Growth

Metric NN PGY Software Infrastructure median
Revenue growth (TTM) (36.46%) 20.55% 13.41%
EPS growth (last fiscal year) (69.05%) 116.43% 27.10%
Revenue growth, 5-year CAGR 51.71% 67.40% 15.57%
Net income growth, 5-year CAGR 0.00% 75.33% 0.00%

Health

Metric NN PGY Software Infrastructure median
Debt to equity 0.00 1.12 0.05
Current ratio 25.63 11.08 1.55
Net debt to EBITDA (2.30) (1.90) 0.08

Dividend

Metric NN PGY Software Infrastructure median
Dividend yield — — 1.20%
Payout ratio — — 0.29

Size

Metric NN PGY Software Infrastructure median
Market cap 1.81b 1.49b 752.37m

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