WallStSmart

Pegasystems Inc (PEGA)vsPalantir Technologies Inc. (PLTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palantir Technologies Inc. generates 163% more annual revenue ($4.48B vs $1.70B). PLTR leads profitability with a 36.3% profit margin vs 20.0%. PLTR appears more attractively valued with a PEG of 2.84. PLTR earns a higher WallStSmart Score of 73/100 (B).

PEGA

Hold

45

out of 100

Grade: D+

Growth: 3.3Profit: 8.0Value: 6.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.77

PLTR

Strong Buy

73

out of 100

Grade: B

Growth: 10.0Profit: 9.5Value: 3.0Quality: 9.0
Piotroski: 5/9Altman Z: 4.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEGAUndervalued (+63.9%)

Margin of Safety

+63.9%

Fair Value

$105.15

Current Price

$35.67

$69.48 discount

UndervaluedFair: $105.15Overvalued

Intrinsic value data unavailable for PLTR.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEGA3 strengths · Avg: 9.7/10
Return on EquityProfitability
51.7%10/10

Every $100 of equity generates 52 in profit

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Profit MarginProfitability
20.0%9/10

Keeps 20 of every $100 in revenue as profit

PLTR6 strengths · Avg: 10.0/10
Market CapQuality
$333.47B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
36.3%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
40.9%10/10

Strong operational efficiency at 40.9%

Revenue GrowthGrowth
70.0%10/10

Revenue surging 70.0% year-over-year

EPS GrowthGrowth
648.0%10/10

Earnings expanding 648.0% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

Areas to Watch

PEGA4 concerns · Avg: 2.5/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

PEG RatioValuation
4.132/10

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%

PLTR3 concerns · Avg: 2.0/10
PEG RatioValuation
2.842/10

Expensive relative to growth rate

P/E RatioValuation
220.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
45.0x2/10

Trading at 45.0x book value

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : PLTR

The strongest argument for PLTR centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 36.3% and operating margin at 40.9%. Revenue growth of 70.0% demonstrates continued momentum.

Bear Case : PEGA

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

Bear Case : PLTR

The primary concerns for PLTR are PEG Ratio, P/E Ratio, Price/Book. A P/E of 220.8x leaves little room for execution misses.

Key Dynamics to Monitor

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

PLTR carries more volatility with a beta of 1.67 — expect wider price swings.

PLTR is growing revenue faster at 70.0% — sustainability is the question.

PLTR generates stronger free cash flow (764M), providing more financial flexibility.

Bottom Line

PLTR scores higher overall (73/100 vs 45/100), backed by strong 36.3% margins and 70.0% revenue growth. PEGA offers better value entry with a 63.9% margin of safety. Both earn "Strong 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.

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.

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Palantir Technologies Inc.

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Palantir Technologies Inc. creates and implements software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations. The company is headquartered in Denver, Colorado.

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