Pegasystems Inc (PEGA)vsSonos Inc (SONO)
PEGA
Pegasystems Inc
$30.95
+4.81%
TECHNOLOGY · Cap: $5.37B
SONO
Sonos Inc
$17.52
+4.29%
TECHNOLOGY · Cap: $1.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Pegasystems Inc generates 16% more annual revenue ($1.70B vs $1.46B). PEGA leads profitability with a 20.0% profit margin vs 1.6%. PEGA trades at a lower P/E of 17.4x. SONO earns a higher WallStSmart Score of 45/100 (D+).
PEGA
Hold45
out of 100
Grade: D+
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.1%
Fair Value
$94.98
Current Price
$30.95
$64.03 discount
Margin of Safety
-35.3%
Fair Value
$12.20
Current Price
$17.52
$5.32 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 48 in profit
Keeps 20 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Revenue declined 9.6%
Earnings declined 60.6%
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, Profit Margin, Debt/Equity. Profitability is solid with margins at 20.0% and operating margin at 8.6%.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : PEGA
The primary concerns for PEGA are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 89.4x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
PEGA profiles as a declining stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.96 — expect wider price swings.
SONO is growing revenue faster at 8.4% — sustainability is the question.
PEGA generates stronger free cash flow (80M), providing more financial flexibility.
Bottom Line
PEGA scores higher overall (45/100 vs 45/100), backed by strong 20.0% 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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