Clicksoftware Technologies (CKSW) versus Pegasystems (PEGA) Financial Contrast

Clicksoftware Technologies (NASDAQ: CKSW) 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 earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Institutional & Insider Ownership

45.8% of Pegasystems shares are held by institutional investors. 53.6% of Pegasystems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Clicksoftware Technologies and Pegasystems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clicksoftware Technologies 0 0 0 0 N/A
Pegasystems 0 1 4 0 2.80

Pegasystems has a consensus price target of $61.75, indicating a potential upside of 25.51%. Given Pegasystems’ higher possible upside, analysts clearly believe Pegasystems is more favorable than Clicksoftware Technologies.

Profitability

This table compares Clicksoftware Technologies and Pegasystems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clicksoftware Technologies -17.41% -33.03% -19.26%
Pegasystems 5.67% 9.86% 5.34%

Volatility & Risk

Clicksoftware Technologies has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Pegasystems has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Earnings & Valuation

This table compares Clicksoftware Technologies and Pegasystems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clicksoftware Technologies N/A N/A N/A ($0.17) -74.12
Pegasystems $750.27 million 5.11 $26.98 million $0.55 89.45

Pegasystems has higher revenue and earnings than Clicksoftware Technologies. Clicksoftware Technologies is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.

Dividends

Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Clicksoftware Technologies does not pay a dividend. Pegasystems pays out 21.8% of its earnings in the form of a dividend.

Summary

Pegasystems beats Clicksoftware Technologies on 11 of the 13 factors compared between the two stocks.

About Clicksoftware Technologies

ClickSoftware Technologies Ltd. is a provider of software products and solutions for workforce management and optimization both for mobile and in-house resources. The Company’s solutions are grouped into four main suites, which together comprise its Service Optimization Suite: Field Service Daily Suite, Roster (Shift Planning) Suite, Mobility Suite, and Forecasting and Planning Suite. Field Service Daily Suite covers automatic decision making and optimization support to manage field service operations. Roster (Shift Planning) Suite covers shift planning needs for both the manager, as well as the employee. Mobility Suite covers the needs of the mobile individual and back-office staff for field data communication. Forecasting and Planning Suite covers tactical short term resource planning. The Company operates as a wholly owned subsidiary of Francisco Partners.

About Pegasystems

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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