Pegasystems Inc (PEGA)vsSAP SE ADR (SAP)
PEGA
Pegasystems Inc
$41.49
-1.10%
TECHNOLOGY · Cap: $7.12B
SAP
SAP SE ADR
$168.95
-1.20%
TECHNOLOGY · Cap: $217.55B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 2008% more annual revenue ($36.80B vs $1.75B). PEGA leads profitability with a 22.5% profit margin vs 19.5%. SAP appears more attractively valued with a PEG of 0.79. PEGA earns a higher WallStSmart Score of 61/100 (C+).
PEGA
Buy61
out of 100
Grade: C+
SAP
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+62.0%
Fair Value
$99.68
Current Price
$41.49
$58.19 discount
Margin of Safety
-88.8%
Fair Value
$104.04
Current Price
$168.95
$64.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 57 in profit
Earnings expanding 104.3% YoY
Conservative balance sheet, low leverage
Keeps 23 of every $100 in revenue as profit
Strong operational efficiency at 24.9%
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Strong operational efficiency at 29.2%
Generating 1.1B in free cash flow
Areas to Watch
Trading at 9.0x book value
2.7% revenue growth
Expensive relative to growth rate
Moderate valuation
3.3% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, EPS Growth, Debt/Equity. Profitability is solid with margins at 22.5% and operating margin at 24.9%.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, Revenue Growth, PEG Ratio.
Bear Case : SAP
The primary concerns for SAP are P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
PEGA carries more volatility with a beta of 1.12 — expect wider price swings.
SAP is growing revenue faster at 3.3% — sustainability is the question.
SAP generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PEGA scores higher overall (61/100 vs 58/100), backed by strong 22.5% margins. Both earn "Buy" and "Buy" 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.
Visit Website →SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
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