Apptio (NASDAQ: APTI) and Pegasystems (NASDAQ:PEGA) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
This is a breakdown of current ratings and target prices for Apptio and Pegasystems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Apptio presently has a consensus price target of $23.33, suggesting a potential upside of 27.78%. Pegasystems has a consensus price target of $61.75, suggesting a potential upside of 3.69%. Given Apptio’s higher possible upside, analysts clearly believe Apptio is more favorable than Pegasystems.
Insider & Institutional Ownership
45.3% of Apptio shares are held by institutional investors. Comparatively, 44.5% of Pegasystems shares are held by institutional investors. 43.2% of Apptio shares are held by company insiders. Comparatively, 53.6% of Pegasystems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Apptio and Pegasystems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Apptio and Pegasystems’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Apptio||$174.10 million||4.19||-$22.22 million||($1.19)||-15.34|
|Pegasystems||$803.64 million||5.75||$75.15 million||$0.61||97.62|
Pegasystems has higher revenue and earnings than Apptio. Apptio is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.
Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Apptio does not pay a dividend. Pegasystems pays out 19.7% of its earnings in the form of a dividend.
Pegasystems beats Apptio on 10 of the 14 factors compared between the two stocks.
Apptio Company Profile
Apptio, Inc. is a provider of technology business management (TBM) solutions. The Company’s cloud-based platform and software as a service (SaaS) applications enable information technology (IT) leaders to analyze, optimize and plan technology investments, and benchmark the financial and operational performance against peers. It operates in the United States, the United Kingdom, Germany, Denmark, the Netherlands, Australia, Canada, France and Singapore. Its TBM solutions consist of a cloud-based platform and SaaS applications, which include Cost Transparency, IT Benchmarking, Business Insights, Bill of IT and IT Planning. It serves a range of industries, including financial services, professional services, technology, energy, consumer goods, manufacturing, healthcare, media, retail and transportation, as well as federal and state government agencies. Its cloud-based data and analytics platform aggregates, cleanses and correlates customer data from a range of disparate sources.
Pegasystems Company Profile
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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