Pegasystems Inc (PEGA)vsSynopsys Inc (SNPS)
PEGA
Pegasystems Inc
$35.67
-0.81%
TECHNOLOGY · Cap: $5.96B
SNPS
Synopsys Inc
$482.60
+0.29%
TECHNOLOGY · Cap: $92.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Synopsys Inc generates 371% more annual revenue ($8.01B vs $1.70B). PEGA leads profitability with a 20.0% profit margin vs 13.8%. SNPS appears more attractively valued with a PEG of 3.17. SNPS earns a higher WallStSmart Score of 47/100 (D+).
PEGA
Hold45
out of 100
Grade: D+
SNPS
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.9%
Fair Value
$105.15
Current Price
$35.67
$69.48 discount
Intrinsic value data unavailable for SNPS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 52 in profit
Conservative balance sheet, low leverage
Keeps 20 of every $100 in revenue as profit
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Areas to Watch
Trading at 8.5x book value
Expensive relative to growth rate
Revenue declined 9.6%
Earnings declined 60.6%
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
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 : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, PEG Ratio, Revenue Growth.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 74.3x leaves little room for execution misses.
Key Dynamics to Monitor
PEGA profiles as a declining stock while SNPS is a growth play — different risk/reward profiles.
SNPS carries more volatility with a beta of 1.15 — expect wider price swings.
SNPS is growing revenue faster at 65.5% — sustainability is the question.
SNPS generates stronger free cash flow (822M), providing more financial flexibility.
Bottom Line
SNPS scores higher overall (47/100 vs 45/100) and 65.5% revenue growth. PEGA offers better value entry with a 63.9% margin of safety. 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 →Synopsys Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
Want to dig deeper into these stocks?