Pegasystems Inc (PEGA)vsShopify Inc (SHOP)
PEGA
Pegasystems Inc
$41.49
-1.10%
TECHNOLOGY · Cap: $7.12B
SHOP
Shopify Inc
$118.42
+1.95%
TECHNOLOGY · Cap: $151.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 562% more annual revenue ($11.56B vs $1.75B). PEGA leads profitability with a 22.5% profit margin vs 10.6%. SHOP appears more attractively valued with a PEG of 9.56. PEGA earns a higher WallStSmart Score of 61/100 (C+).
PEGA
Buy61
out of 100
Grade: C+
SHOP
Hold48
out of 100
Grade: D+
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
-1729.9%
Fair Value
$6.39
Current Price
$118.42
$112.03 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%
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Areas to Watch
Trading at 9.0x book value
2.7% revenue growth
Expensive relative to growth rate
Trading at 11.5x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, Revenue Growth, PEG Ratio.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x leaves little room for execution misses.
Key Dynamics to Monitor
PEGA profiles as a value stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.90 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
SHOP generates stronger free cash flow (715M), providing more financial flexibility.
Bottom Line
PEGA scores higher overall (61/100 vs 48/100), backed by strong 22.5% margins. 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 →Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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