WallStSmart

NVIDIA Corporation (NVDA)vsPegasystems Inc (PEGA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NVIDIA Corporation generates 14810% more annual revenue ($253.49B vs $1.70B). NVDA leads profitability with a 63.0% profit margin vs 20.0%. NVDA appears more attractively valued with a PEG of 0.69. NVDA earns a higher WallStSmart Score of 80/100 (A-).

NVDA

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.75

PEGA

Hold

45

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 6.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVDASignificantly Overvalued (-71.9%)

Margin of Safety

-71.9%

Fair Value

$119.30

Current Price

$205.10

$85.80 premium

UndervaluedFair: $119.30Overvalued
PEGAUndervalued (+60.6%)

Margin of Safety

+60.6%

Fair Value

$96.36

Current Price

$34.71

$61.65 discount

UndervaluedFair: $96.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVDA6 strengths · Avg: 10.0/10
Market CapQuality
$5.40T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
81.7%10/10

Every $100 of equity generates 82 in profit

Profit MarginProfitability
63.0%10/10

Keeps 63 of every $100 in revenue as profit

Operating MarginProfitability
65.6%10/10

Strong operational efficiency at 65.6%

Revenue GrowthGrowth
85.2%10/10

Revenue surging 85.2% year-over-year

EPS GrowthGrowth
214.5%10/10

Earnings expanding 214.5% YoY

PEGA4 strengths · Avg: 9.3/10
Return on EquityProfitability
48.3%10/10

Every $100 of equity generates 48 in profit

Debt/EquityHealth
0.0810/10

Conservative balance sheet, low leverage

Profit MarginProfitability
20.0%9/10

Keeps 20 of every $100 in revenue as profit

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Areas to Watch

NVDA3 concerns · Avg: 3.0/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
31.7x2/10

Trading at 31.7x book value

PEGA4 concerns · Avg: 2.5/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

PEG RatioValuation
3.762/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.6%2/10

Revenue declined 9.6%

EPS GrowthGrowth
-60.6%2/10

Earnings declined 60.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : NVDA

The strongest argument for NVDA centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 63.0% and operating margin at 65.6%. Revenue growth of 85.2% demonstrates continued momentum.

Bull Case : PEGA

The strongest argument for PEGA centers on Return on Equity, Debt/Equity, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 8.6%.

Bear Case : NVDA

The primary concerns for NVDA are P/E Ratio, Piotroski F-Score, Price/Book.

Bear Case : PEGA

The primary concerns for PEGA are Price/Book, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

NVDA profiles as a growth stock while PEGA is a declining play — different risk/reward profiles.

NVDA carries more volatility with a beta of 2.24 — expect wider price swings.

NVDA is growing revenue faster at 85.2% — sustainability is the question.

NVDA generates stronger free cash flow (48.6B), providing more financial flexibility.

Bottom Line

NVDA scores higher overall (80/100 vs 45/100), backed by strong 63.0% margins and 85.2% revenue growth. PEGA offers better value entry with a 60.6% margin of safety. Both earn "Exceptional Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

NVIDIA Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

Nvidia Corporation is an American multinational technology company incorporated in Delaware and based in Santa Clara, California. It designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.

Visit Website →

Pegasystems Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Pegasystems Inc. develops, markets, licenses, hosts and supports business software applications in the United States, the rest of the Americas, the United Kingdom, the rest of Europe, the Middle East, Africa, and Asia-Pacific. The company is headquartered in Cambridge, Massachusetts.

Visit Website →

Want to dig deeper into these stocks?