Pagaya Technologies Ltd. (PGY) vs Xanadu Quantum Technologies Limited (XNDU)

Pagaya Technologies Ltd. and Xanadu Quantum Technologies Limited are both Software Infrastructure companies. Pagaya Technologies Ltd. and Xanadu Quantum Technologies Limited are of similar size ($1.6B and $1.6B). Xanadu Quantum Technologies Limited has negative trailing earnings, so its P/E is not meaningful; Pagaya Technologies Ltd. trades at 11.7×. Pagaya Technologies Ltd. has the higher net margin (9.11% vs −1,475.7%) and the higher return on invested capital (741.9% vs −155.2%). Across the 14 metrics below, Pagaya Technologies Ltd. leads on 11 and Xanadu Quantum Technologies Limited on 3.

Valuation

Metric PGY XNDU Software Infrastructure median
P/E 11.75 n/m 28.02
P/S 1.05 244.44 3.07
P/B 2.26 4.76 3.36
Price to free cash flow 5.82 n/m 17.12
EV/EBITDA 2.75 n/m 14.91
EV/Sales 0.74 198.49 3.03
Earnings yield 8.51% (18.32%) 0.13%
Free cash flow yield 17.18% (4.77%) 1.15%

Profitability

Metric PGY XNDU Software Infrastructure median
Gross margin 43.39% 94.26% 61.23%
Operating margin 24.86% (1,337.04%) 0.00%
Net margin 9.11% (1,475.65%) 0.00%
Free cash flow margin 18.11% (1,165.01%) 1.67%
Return on equity 22.68% 0.00% 0.59%
Return on assets 8.19% (46.87%) 0.00%
Return on invested capital 741.93% (155.22%) 0.00%

Growth

Metric PGY XNDU Software Infrastructure median
Revenue growth (TTM) 20.55% — 13.41%
EPS growth (last fiscal year) 116.43% — —
Revenue growth, 5-year CAGR 67.40% — 15.81%
Net income growth, 5-year CAGR 75.33% — 0.00%

Health

Metric PGY XNDU Software Infrastructure median
Debt to equity 1.12 0.10 0.06
Current ratio 11.08 25.54 1.55
Net debt to EBITDA (1.90) — 0.08

Dividend

Metric PGY XNDU Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 — 0.00

Size

Metric PGY XNDU Software Infrastructure median
Market cap 1.59b 1.57b 835.96m

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