Pegasystems (NASDAQ:PEGA – Get Free Report) is one of 953 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare Pegasystems to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, institutional ownership and profitability.
Risk and Volatility
Pegasystems has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Pegasystems’ peers have a beta of 1.34, suggesting that their average stock price is 34% more volatile than the S&P 500.
Valuation and Earnings
This table compares Pegasystems and its peers top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Pegasystems | $1.75 billion | $393.44 million | 21.34 |
| Pegasystems Competitors | $1.81 billion | $385.92 million | 109.82 |
Pegasystems’ peers have higher revenue, but lower earnings than Pegasystems. Pegasystems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Profitability
This table compares Pegasystems and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pegasystems | 16.86% | 35.22% | 15.55% |
| Pegasystems Competitors | -612.69% | 20.88% | -8.98% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Pegasystems and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pegasystems | 2 | 7 | 6 | 0 | 2.27 |
| Pegasystems Competitors | 5732 | 21470 | 44775 | 1493 | 2.57 |
Pegasystems currently has a consensus price target of $45.73, suggesting a potential upside of 33.08%. As a group, “Software” companies have a potential upside of 25.91%. Given Pegasystems’ higher possible upside, equities research analysts clearly believe Pegasystems is more favorable than its peers.
Dividends
Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Pegasystems pays out 7.5% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.8% and pay out 45.2% of their earnings in the form of a dividend.
Institutional & Insider Ownership
46.9% of Pegasystems shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 48.4% of Pegasystems shares are owned by company insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Pegasystems beats its peers on 8 of the 15 factors compared.
About Pegasystems
Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, an intelligent automation software for increasing efficiency of clients’ processes and workflows. It also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client’s business, such as customer types, lines of business, geographies, etc.; Pega Express Methodology and low code that connects enterprise data and systems to customer experience channels; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.
Receive News & Ratings for Pegasystems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pegasystems and related companies with MarketBeat.com's FREE daily email newsletter.
