Pegasystems (PEGA) versus Its Competitors Critical Comparison
Pegasystems (NASDAQ: PEGA) is one of 97 public companies in the “Enterprise Software” industry, but how does it compare to its rivals? We will compare Pegasystems to similar businesses based on the strength of its risk, analyst recommendations, valuation, earnings, dividends, institutional ownership and profitability.
This table compares Pegasystems and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Pegasystems pays out 19.7% of its earnings in the form of a dividend. As a group, “Enterprise Software” companies pay a dividend yield of 0.8% and pay out 26.4% of their earnings in the form of a dividend.
Insider & Institutional Ownership
44.5% of Pegasystems shares are owned by institutional investors. Comparatively, 60.5% of shares of all “Enterprise Software” companies are owned by institutional investors. 53.6% of Pegasystems shares are owned by company insiders. Comparatively, 22.5% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Pegasystems has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Pegasystems’ rivals have a beta of 1.13, suggesting that their average stock price is 13% more volatile than the S&P 500.
Earnings and Valuation
This table compares Pegasystems and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Pegasystems||$803.64 million||$75.15 million||96.15|
|Pegasystems Competitors||$1.27 billion||$348.14 million||35.49|
Pegasystems’ rivals have higher revenue and earnings than Pegasystems. Pegasystems is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent ratings and target prices for Pegasystems and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pegasystems presently has a consensus target price of $61.75, suggesting a potential upside of 5.29%. As a group, “Enterprise Software” companies have a potential upside of 6.52%. Given Pegasystems’ rivals higher probable upside, analysts plainly believe Pegasystems has less favorable growth aspects than its rivals.
Pegasystems beats its rivals on 9 of the 15 factors compared.
Pegasystems Inc. develops, markets, licenses and supports software applications for marketing, sales and onboarding, and customer service needs. The Company also offers software applications built on the Pega platform. Its software is designed to assist clients in building, deploying and evolving enterprise applications. Its applications and platform intersect with and encompass several traditional software markets, including Customer Relationship Management (CRM); Business Process Management (BPM); Business Rules Management Systems (BRMS); Dynamic Case Management (DCM); Decision Management, which includes Predictive and Adaptive analytics, and the Vertical Specific Software (VSS) market of industry solutions and packaged applications. It provides implementation, consulting, training, technical support and hosting services to facilitate the use of its software. The Company offers its services to financial, healthcare, insurance, manufacturing, life sciences and other markets.
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