Pegasystems Inc. (PEGA) vs CLEAR Secure, Inc. (YOU)

Pegasystems Inc. and CLEAR Secure, Inc. are both Software Application companies. Pegasystems Inc. and CLEAR Secure, Inc. are of similar size ($5.6B and $5.2B). Pegasystems Inc. trades at the lower P/E: 17.8× against 26.6×. CLEAR Secure, Inc. grew revenue faster over the last twelve months: 19.8% against 3.60%. Pegasystems Inc. has the higher net margin (18.7% vs 14.8%) and the higher return on invested capital (54.4% vs 0.00%). Both pay a dividend; CLEAR Secure, Inc. yields more (0.83% vs 0.23%). Across the 21 metrics below, CLEAR Secure, Inc. leads on 11 and Pegasystems Inc. on 10.

Valuation

Metric PEGA YOU Software Application median
P/E 17.76 26.58 24.79
P/S 3.22 3.99 2.67
P/B 9.97 16.42 3.01
Price to free cash flow 11.35 7.86 16.59
EV/EBITDA 23.28 10.67 14.40
EV/Sales 3.57 3.03 2.62
Earnings yield 5.63% 3.76% 0.00%
Free cash flow yield 8.81% 12.72% 1.91%

Profitability

Metric PEGA YOU Software Application median
Gross margin 75.57% 66.66% 67.03%
Operating margin 9.94% 25.13% 0.00%
Net margin 18.66% 14.78% 0.00%
Free cash flow margin 28.36% 50.80% 4.32%
Return on equity 54.69% 79.97% 0.00%
Return on assets 23.93% 10.72% 0.00%
Return on invested capital 54.36% 0.00% 0.00%

Growth

Metric PEGA YOU Software Application median
Revenue growth (TTM) 3.60% 19.77% 12.40%
EPS growth (last fiscal year) 283.78% (28.21%) —
Revenue growth, 5-year CAGR 11.40% 31.30% 13.72%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PEGA YOU Software Application median
Debt to equity 0.00 0.00 0.02
Current ratio 1.06 1.04 1.55
Net debt to EBITDA (1.19) (3.18) 0.06

Dividend

Metric PEGA YOU Software Application median
Dividend yield 0.23% 0.83% 1.25%
Payout ratio 0.67 0.00 0.00

Size

Metric PEGA YOU Software Application median
Market cap 5.62b 5.17b 396.11m

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