Rand Worldwide (OTCMKTS:RWWI) vs. Pegasystems (NASDAQ:PEGA) Head-To-Head Review

Rand Worldwide (OTCMKTS:RWWI) and Pegasystems (NASDAQ:PEGA) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares Rand Worldwide and Pegasystems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rand Worldwide	$178.84 million	2.67	$46.59 million	$1.16	12.24
Pegasystems	$1.75 billion	3.13	$393.44 million	$1.86	17.59

Pegasystems has higher revenue and earnings than Rand Worldwide. Rand Worldwide is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Rand Worldwide and Pegasystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rand Worldwide	0	0	0	0	0.00
Pegasystems	0	3	8	0	2.73

Pegasystems has a consensus target price of $63.30, indicating a potential upside of 93.46%. Given Pegasystems’ stronger consensus rating and higher possible upside, analysts clearly believe Pegasystems is more favorable than Rand Worldwide.

Profitability

This table compares Rand Worldwide and Pegasystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rand Worldwide	27.20%	70.93%	26.54%
Pegasystems	20.04%	30.05%	14.07%

Insider & Institutional Ownership

0.0% of Rand Worldwide shares are held by institutional investors. Comparatively, 46.9% of Pegasystems shares are held by institutional investors. 59.2% of Rand Worldwide shares are held by insiders. Comparatively, 48.4% of Pegasystems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Rand Worldwide has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Pegasystems has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Summary

Pegasystems beats Rand Worldwide on 10 of the 14 factors compared between the two stocks.

About Rand Worldwide

Rand Worldwide, Inc. provides design automation and data management solutions primarily in the United States and Canada. It operates in five divisions: IMAGINiT Technologies, Rand Simulation, Facilities Management, ASCENT, and Rand 3D. The IMAGINiT Technologies division resells Autodesk solutions and system integration, and consulting services to customers in the manufacturing, infrastructure, building, and media and entertainment industries; resells Twinmotion visualization software, which provides design professionals to transform architectural models and designs into photorealistic images and immersive videos; offers a range of 3D laser scanning equipment and related software to help architectural, engineering, and construction firms; and sells its own proprietary software products and related services. The Rand Simulation division offers Ansys engineering simulation software to help organizations incorporate engineering simulation technology into the product development process; and provides simulation consulting services to enable organizations to achieve cost savings and design improvements through simulation technology. The Facilities Management division provides ARCHIBUS products for facilities management software for space planning, strategic planning, and lease/property administration; and offers various training, consulting, and support services for the ARCHIBUS products. The ASCENT division provides professional training materials and knowledge products for engineering software tools. The Rand 3D division offers training solutions for Dassault Systèmes and PTC products, including Pro/ENGINEER, CREO, and Windchill. Rand Worldwide, Inc. is based in Baltimore, Maryland.

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.