Pegasystems Inc (PEGA)vsSAP SE ADR (SAP)
PEGA
Pegasystems Inc
$35.37
+0.14%
TECHNOLOGY · Cap: $5.58B
SAP
SAP SE ADR
$236.93
+0.48%
TECHNOLOGY · Cap: $272.16B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 2168% more annual revenue ($39.39B vs $1.74B). SAP leads profitability with a 20.4% profit margin vs 18.7%. SAP appears more attractively valued with a PEG of 1.84. SAP earns a higher WallStSmart Score of 60/100 (C).
PEGA
Hold48
out of 100
Grade: D+
SAP
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.7%
Fair Value
$96.57
Current Price
$35.37
$61.20 discount
Margin of Safety
-25.6%
Fair Value
$156.37
Current Price
$236.93
$80.56 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 48 in profit
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 29.5%
Generating 1.7B in free cash flow
Areas to Watch
Trading at 10.4x book value
Operating margin of 4.6%
Expensive relative to growth rate
Earnings declined 52.9%
Expensive relative to growth rate
Moderate valuation
Trading at 74.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity. Profitability is solid with margins at 18.7% and operating margin at 4.6%.
Bull Case : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 29.5%. Revenue growth of 13.2% demonstrates continued momentum.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, Operating Margin, PEG Ratio.
Bear Case : SAP
The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
PEGA carries more volatility with a beta of 0.89 — expect wider price swings.
SAP is growing revenue faster at 13.2% — sustainability is the question.
SAP generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SAP scores higher overall (60/100 vs 48/100), backed by strong 20.4% margins and 13.2% revenue growth. PEGA offers better value entry with a 60.7% margin of safety. Both earn "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.
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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