Analyzing Pegasystems (PEGA) and Apptio (NASDAQ:APTI)

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.

Analyst Ratings

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 0 2 7 0 2.78
Pegasystems 0 1 4 0 2.80

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.

Profitability

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

Net Margins Return on Equity Return on Assets
Apptio -17.36% -41.76% -15.95%
Pegasystems 6.17% 13.06% 7.04%

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.

Dividends

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.

Summary

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.

Receive News & Ratings for Apptio Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Apptio Inc. and related companies with our FREE daily email newsletter.

 


Latest News

Alex Cora Becomes New Manager for Boston Red Sox
Alex Cora Becomes New Manager for Boston Red Sox
Houston’s Dallas Keuchel Could Make Relief Appearance in Game 7
Houston’s Dallas Keuchel Could Make Relief Appearance in Game 7
Houston Astros Relying on Justin Verlander to Save Their Season
Houston Astros Relying on Justin Verlander to Save Their Season
Clayton Kershaw Gets Chance to Pitch LA into Fall Classic
Clayton Kershaw Gets Chance to Pitch LA into Fall Classic
Aaron Judge and Gary Sanchez Have Break Out Games
Aaron Judge and Gary Sanchez Have Break Out Games
Justin Turner Joining Postseason Legends
Justin Turner Joining Postseason Legends


Leave a Reply

 
© 2006-2017 BBNS.