Pegasystems Inc (PEGA)vsShopify Inc (SHOP)
PEGA
Pegasystems Inc
$34.71
-2.06%
TECHNOLOGY · Cap: $5.47B
SHOP
Shopify Inc
$109.54
-5.60%
TECHNOLOGY · Cap: $139.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 627% more annual revenue ($12.37B vs $1.70B). PEGA leads profitability with a 20.0% profit margin vs 10.8%. SHOP appears more attractively valued with a PEG of 2.10. SHOP earns a higher WallStSmart Score of 50/100 (C-).
PEGA
Hold45
out of 100
Grade: D+
SHOP
Buy50
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
+18.4%
Fair Value
$143.39
Current Price
$109.54
$33.85 discount
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
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Trading at 8.3x book value
Expensive relative to growth rate
Revenue declined 9.6%
Earnings declined 60.6%
Expensive relative to growth rate
Trading at 11.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, PEG Ratio, Revenue Growth.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 105.4x leaves little room for execution misses.
Key Dynamics to Monitor
PEGA profiles as a declining stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.59 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
SHOP generates stronger free cash flow (476M), providing more financial flexibility.
Bottom Line
SHOP scores higher overall (50/100 vs 45/100) and 34.3% revenue growth. 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 →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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