WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palantir Technologies Inc. generates 207% more annual revenue ($5.22B vs $1.70B). PLTR leads profitability with a 43.7% profit margin vs 20.0%. PLTR appears more attractively valued with a PEG of 2.30. PLTR earns a higher WallStSmart Score of 73/100 (B).

PEGA

Hold

45

out of 100

Grade: D+

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

PLTR

Strong Buy

73

out of 100

Grade: B

Growth: 10.0Profit: 9.5Value: 2.7Quality: 9.0
Piotroski: 5/9Altman Z: 4.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEGAUndervalued (+60.6%)

Margin of Safety

+60.6%

Fair Value

$96.36

Current Price

$34.71

$61.65 discount

UndervaluedFair: $96.36Overvalued
PLTRSignificantly Overvalued (-78.1%)

Margin of Safety

-78.1%

Fair Value

$76.08

Current Price

$141.70

$65.62 premium

UndervaluedFair: $76.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PLTR6 strengths · Avg: 10.0/10
Market CapQuality
$364.80B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
43.7%10/10

Keeps 44 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Revenue GrowthGrowth
84.7%10/10

Revenue surging 84.7% year-over-year

EPS GrowthGrowth
325.0%10/10

Earnings expanding 325.0% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Areas to Watch

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%

PLTR3 concerns · Avg: 2.7/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

P/E RatioValuation
172.9x2/10

Premium valuation, high expectations priced in

Price/BookValuation
40.1x2/10

Trading at 40.1x 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 43.7% and operating margin at 46.2%. Revenue growth of 84.7% 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 172.9x 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 1.52 — expect wider price swings.

PLTR is growing revenue faster at 84.7% — sustainability is the question.

PLTR generates stronger free cash flow (892M), providing more financial flexibility.

Bottom Line

PLTR scores higher overall (73/100 vs 45/100), backed by strong 43.7% margins and 84.7% revenue growth. PEGA offers better value entry with a 60.6% 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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