Pegasystems Inc. (PEGA) vs Workiva Inc. (WK)

Pegasystems Inc. and Workiva Inc. are both Software Application companies. Pegasystems Inc. is the larger, with a market value of $5.6B against $4.6B — 1.2× the size. Pegasystems Inc. trades at the lower P/E: 19.3× against 75.7×. Workiva Inc. grew revenue faster over the last twelve months: 18.8% against 0.93%. Pegasystems Inc. has the higher net margin (16.9% vs 6.31%) and the higher return on invested capital (45.2% vs 0.00%). Across the 20 metrics below, Pegasystems Inc. leads on 15 and Workiva Inc. on 5.

Valuation

Metric PEGA WK Software Application median
P/E 19.31 75.71 25.90
P/S 3.15 4.65 3.04
P/B 10.02 n/m 2.60
Price to free cash flow 12.44 20.98 17.17
EV/EBITDA 23.26 113.45 15.48
EV/Sales 3.52 4.62 2.89
Earnings yield 5.18% 1.32% 0.00%
Free cash flow yield 8.04% 4.77% 1.98%

Profitability

Metric PEGA WK Software Application median
Gross margin 75.86% 80.64% 66.89%
Operating margin 9.90% 5.25% 0.00%
Net margin 16.86% 6.31% 0.00%
Free cash flow margin 25.29% 22.18% 5.77%
Return on equity 51.45% (152.95%) 0.00%
Return on assets 22.47% 4.53% 0.00%
Return on invested capital 45.18% 0.00% 0.00%

Growth

Metric PEGA WK Software Application median
Revenue growth (TTM) 0.93% 18.80% 12.27%
EPS growth (last fiscal year) 283.78% 52.53% 32.11%
Revenue growth, 5-year CAGR 11.40% 20.26% 14.34%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PEGA WK Software Application median
Debt to equity 0.00 (15.47) 0.02
Current ratio 1.04 1.57 1.53
Net debt to EBITDA (1.19) 3.25 0.09

Dividend

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

Size

Metric PEGA WK Software Application median
Market cap 5.62b 4.64b 487.58m

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