Pegasystems (NASDAQ:PEGA) versus PropertyGuru Group (NYSE:PGRU) Critical Analysis

PropertyGuru Group (NYSE:PGRUGet Free Report) and Pegasystems (NASDAQ:PEGAGet Free Report) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Volatility and Risk

PropertyGuru Group has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, Pegasystems has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for PropertyGuru Group and Pegasystems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PropertyGuru Group 0 0 1 0 3.00
Pegasystems 0 3 5 0 2.63

PropertyGuru Group currently has a consensus price target of $7.00, suggesting a potential upside of 55.21%. Pegasystems has a consensus price target of $72.33, suggesting a potential upside of 22.93%. Given PropertyGuru Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe PropertyGuru Group is more favorable than Pegasystems.

Valuation and Earnings

This table compares PropertyGuru Group and Pegasystems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PropertyGuru Group $111.81 million 6.57 -$11.37 million ($0.05) -90.20
Pegasystems $1.43 billion 3.49 $67.81 million $0.82 71.76

Pegasystems has higher revenue and earnings than PropertyGuru Group. PropertyGuru Group is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares PropertyGuru Group and Pegasystems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PropertyGuru Group -7.37% -1.12% -0.95%
Pegasystems 5.32% 45.00% 8.75%

Institutional and Insider Ownership

61.4% of PropertyGuru Group shares are owned by institutional investors. Comparatively, 46.9% of Pegasystems shares are owned by institutional investors. 3.9% of PropertyGuru Group shares are owned by insiders. Comparatively, 50.1% of Pegasystems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Pegasystems beats PropertyGuru Group on 10 of the 14 factors compared between the two stocks.

About PropertyGuru Group

(Get Free Report)

PropertyGuru Group Limited operates digital property classifieds marketplaces that connects homeowners and tenants with verified home service providers in Singapore, Vietnam, Malaysia, Thailand, and Indonesia. The company offers digital and marketing services for developers. It also offers data and sales process automation products. In addition, the company provides a range of data products and services for agents/agencies, property developers and valuers, and financial institution customers. It serves agents and developers to advertise residential and commercial properties for sale or rent to property seekers. PropertyGuru Group Limited was founded in 2007 and is based in Singapore.

About Pegasystems

(Get Free Report)

Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, an intelligent automation software for increasing efficiency of clients' processes and workflows. It also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client's business, such as customer types, lines of business, geographies, etc.; Pega Express Methodology and low code that connects enterprise data and systems to customer experience channels; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.

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