Pegasystems Inc (PEGA)vsSAP SE ADR (SAP)
PEGA
Pegasystems Inc
$34.71
-2.06%
TECHNOLOGY · Cap: $5.47B
SAP
SAP SE ADR
$184.77
-1.27%
TECHNOLOGY · Cap: $192.92B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 2096% more annual revenue ($37.34B vs $1.70B). PEGA leads profitability with a 20.0% profit margin vs 19.6%. SAP appears more attractively valued with a PEG of 1.44. SAP earns a higher WallStSmart Score of 59/100 (C).
PEGA
Hold45
out of 100
Grade: D+
SAP
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.6%
Fair Value
$96.36
Current Price
$34.71
$61.65 discount
Margin of Safety
-34.7%
Fair Value
$145.83
Current Price
$184.77
$38.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 48 in profit
Conservative balance sheet, low leverage
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Generating 3.3B in free cash flow
Areas to Watch
Trading at 8.3x book value
Expensive relative to growth rate
Revenue declined 9.6%
Earnings declined 60.6%
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 8.6%.
Bull Case : SAP
The strongest argument for SAP centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, PEG Ratio, Revenue Growth.
Bear Case : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
PEGA profiles as a declining stock while SAP is a mature play — different risk/reward profiles.
PEGA carries more volatility with a beta of 0.84 — expect wider price swings.
SAP is growing revenue faster at 6.0% — sustainability is the question.
SAP generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
SAP scores higher overall (59/100 vs 45/100), backed by strong 19.6% margins. PEGA offers better value entry with a 60.6% 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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