Nice (NICE) vs Pegasystems Inc. (PEGA)

Nice and Pegasystems Inc. are both Software Application companies. Nice and Pegasystems Inc. are of similar size ($5.8B and $5.6B). Nice trades at the lower P/E: 13.8× against 19.3×. Nice grew revenue faster over the last twelve months: 8.14% against 0.93%. Pegasystems Inc. has the higher net margin (16.9% vs 13.9%) and the higher return on invested capital (45.2% vs 10.4%). Across the 21 metrics below, Nice leads on 13 and Pegasystems Inc. on 8.

Valuation

Metric NICE PEGA Software Application median
P/E 13.81 19.31 25.90
P/S 1.84 3.15 3.04
P/B 1.46 10.02 2.60
Price to free cash flow 10.07 12.44 17.17
EV/EBITDA 7.69 23.26 15.48
EV/Sales 2.03 3.52 2.89
Earnings yield 7.24% 5.18% 0.00%
Free cash flow yield 9.93% 8.04% 1.98%

Profitability

Metric NICE PEGA Software Application median
Gross margin 65.12% 75.86% 66.89%
Operating margin 18.50% 9.90% 0.00%
Net margin 13.86% 16.86% 0.00%
Free cash flow margin 18.29% 25.29% 5.77%
Return on equity 0.00% 51.45% 0.00%
Return on assets 8.16% 22.47% 0.00%
Return on invested capital 10.37% 45.18% 0.00%

Growth

Metric NICE PEGA Software Application median
Revenue growth (TTM) 8.14% 0.93% 12.27%
EPS growth (last fiscal year) 43.05% 283.78% 32.11%
Revenue growth, 5-year CAGR 12.31% 11.40% 14.34%
Net income growth, 5-year CAGR 25.53% 0.00% 0.00%

Health

Metric NICE PEGA Software Application median
Debt to equity 0.00 0.00 0.02
Current ratio 1.33 1.04 1.53
Net debt to EBITDA (0.49) (1.19) 0.09

Dividend

Metric NICE PEGA Software Application median
Dividend yield — 0.36% 1.10%
Payout ratio — 0.07 0.28

Size

Metric NICE PEGA Software Application median
Market cap 5.82b 5.62b 487.58m

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