Analyzing Pegasystems (PEGA) & Instructure (INST)
Pegasystems (NASDAQ: PEGA) and Instructure (NYSE:INST) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.
Risk and Volatility
Pegasystems has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Instructure has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.
This is a summary of current recommendations and price targets for Pegasystems and Instructure, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pegasystems currently has a consensus target price of $61.75, suggesting a potential upside of 7.48%. Instructure has a consensus target price of $36.14, suggesting a potential upside of 7.57%. Given Instructure’s stronger consensus rating and higher probable upside, analysts plainly believe Instructure is more favorable than Pegasystems.
Earnings & Valuation
This table compares Pegasystems and Instructure’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pegasystems||$803.64 million||5.55||$75.15 million||$0.61||94.18|
|Instructure||$133.71 million||7.39||-$47.35 million||($1.79)||-18.77|
Pegasystems has higher revenue and earnings than Instructure. Instructure is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.
Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Instructure does not pay a dividend. Pegasystems pays out 19.7% of its earnings in the form of a dividend.
Insider & Institutional Ownership
44.5% of Pegasystems shares are owned by institutional investors. Comparatively, 78.3% of Instructure shares are owned by institutional investors. 53.6% of Pegasystems shares are owned by insiders. Comparatively, 62.5% of Instructure shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Pegasystems and Instructure’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Instructure beats Pegasystems on 9 of the 16 factors compared between the two stocks.
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.
Instructure, Inc. provides cloud-based learning management platform for academic institutions and companies across the world. The Company operates in the cloud-based learning management systems segment. The Company builds its learning management applications, Canvas for the education market and Bridge for the corporate market, to enable its customers to develop, deliver and manage face-to-face and online learning experiences. The Company develops software that students, teachers and employees use to help achieve their education and learning goals. Its applications develop academic and corporate learning by providing a platform for instructors and learners, enabling frequent and open interactions, streamlining workflow, and allowing the creation and sharing of content. The Company’s platform runs on a cloud-based architecture that enables users to teach, learn and engage across a range of application environments, operating systems, devices and locations.
Receive News & Ratings for Pegasystems Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pegasystems Inc. and related companies with MarketBeat.com's FREE daily email newsletter.