Critical Comparison: Computer Task Group (CTGX) & Pegasystems (NASDAQ:PEGA)
Computer Task Group (NASDAQ: CTGX) and Pegasystems (NASDAQ:PEGA) are both technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitabiliy, valuation and analyst recommendations.
Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Computer Task Group does not pay a dividend. Pegasystems pays out 23.1% of its earnings in the form of a dividend.
This table compares Computer Task Group and Pegasystems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Computer Task Group||0.98%||3.84%||2.40%|
Earnings & Valuation
This table compares Computer Task Group and Pegasystems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Computer Task Group||N/A||N/A||N/A||N/A||N/A|
|Pegasystems||$794.66 million||5.99||$81.36 million||$0.52||118.66|
Pegasystems has higher revenue and earnings than Computer Task Group.
This is a breakdown of current ratings and price targets for Computer Task Group and Pegasystems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Computer Task Group||0||0||0||0||N/A|
Pegasystems has a consensus price target of $58.00, suggesting a potential downside of 6.00%. Given Pegasystems’ higher possible upside, analysts clearly believe Pegasystems is more favorable than Computer Task Group.
Institutional & Insider Ownership
44.1% of Pegasystems shares are owned by institutional investors. 53.6% 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.
Pegasystems beats Computer Task Group on 9 of the 10 factors compared between the two stocks.
About Computer Task Group
Computer Task Group, Incorporated (CTG) is an information technology (IT) solutions and staffing services company. The Company primarily operates in the segment of providing IT services to its clients. The Company has operations in North America and Europe. The Company is engaged in providing IT services, including IT Solutions, and IT and other Staffing. CTG provides these primary services to all of the markets that it serves. The services provided encompass the IT business solution life cycle, including phases for planning, developing, implementing, managing, and maintaining the IT solution. It provides administrative or warehouse employees to clients to supplement the IT resources. The Company promotes a portion of its services through five vertical market focus areas: technology service providers, manufacturing, healthcare (which includes services provided to healthcare providers, health insurers, and life sciences companies), financial services, and diversified industrials.
Pegasystems Inc. develops, markets, licenses and supports software applications for marketing, sales and onboarding, and customer service needs. The Company also offers software applications built on the Pega platform. Its software is designed to assist clients in building, deploying and evolving enterprise applications. Its applications and platform intersect with and encompass several traditional software markets, including Customer Relationship Management (CRM); Business Process Management (BPM); Business Rules Management Systems (BRMS); Dynamic Case Management (DCM); Decision Management, which includes Predictive and Adaptive analytics, and the Vertical Specific Software (VSS) market of industry solutions and packaged applications. It provides implementation, consulting, training, technical support and hosting services to facilitate the use of its software. The Company offers its services to financial, healthcare, insurance, manufacturing, life sciences and other markets.
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