Pegasystems Inc (PEGA)vsSonos Inc (SONO)
PEGA
Pegasystems Inc
$36.24
+1.46%
TECHNOLOGY · Cap: $5.89B
SONO
Sonos Inc
$15.12
+3.35%
TECHNOLOGY · Cap: $1.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Pegasystems Inc generates 17% more annual revenue ($1.74B vs $1.49B). PEGA leads profitability with a 18.7% profit margin vs 3.8%. PEGA trades at a lower P/E of 20.3x. SONO earns a higher WallStSmart Score of 48/100 (D+).
PEGA
Hold48
out of 100
Grade: D+
SONO
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.1%
Fair Value
$97.56
Current Price
$36.24
$61.32 discount
Margin of Safety
-31.9%
Fair Value
$12.51
Current Price
$15.12
$2.61 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 48 in profit
Conservative balance sheet, low leverage
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Trading at 10.6x book value
Operating margin of 4.6%
Expensive relative to growth rate
Earnings declined 52.9%
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
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 : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, Operating Margin, PEG Ratio.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
PEGA profiles as a mature stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
PEGA is growing revenue faster at 9.4% — sustainability is the question.
PEGA generates stronger free cash flow (80M), providing more financial flexibility.
Bottom Line
PEGA scores higher overall (48/100 vs 48/100), backed by strong 18.7% margins. Both earn "Hold" 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 →Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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