PRGS
Progress Software Corporation
Software - Application
Market Cap$1.19B
5Y Perf.-30.2%
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Stock Comparison
PRGS vs PEGA
Revenue, margins, valuation, and 5-year total return — side by side.
PEGA
Pegasystems Inc.
Software - Application
Market Cap$6.15B
5Y Perf.-23.5%
PRGS vs PEGA — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | PRGS | PEGA |
|---|---|---|
| Industry | Software - Application | Software - Application |
| Market Cap | $1.19B | $6.15B |
| Revenue (TTM) | $978M | $1.70B |
| Net Income (TTM) | $73M | $341M |
| Gross Margin | 80.8% | 75.0% |
| Operating Margin | 15.7% | 10.2% |
| Forward P/E | 4.7x | 13.4x |
| Total Debt | $851M | $76M |
| Cash & Equiv. | $95M | $212M |
PRGS vs PEGA — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
PRGS
PEGA
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Progress Software C… (PRGS) | 100 | 69.8 | -30.2% |
| Pegasystems Inc. (PEGA) | 100 | 76.5 | -23.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PRGS vs PEGA
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PEGA leads in 4 of 7 categories, making it the strongest pick for profitability and margin quality and dividend income and shareholder returns. Progress Software Corporation is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
PRGS
Progress Software Corporation
The Growth Play
PRGS is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 29.8%, EPS growth 7.8%, 3Y rev CAGR 17.5%
- Lower volatility, beta 1.01, current ratio 0.49x
- 29.8% revenue growth vs PEGA's 16.6%
Best for: growth exposure and sleep-well-at-night
PEGA
Pegasystems Inc.
The Income Pick
PEGA carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 1 yrs, beta 1.16, yield 0.2%
- 186.0% 10Y total return vs PRGS's 35.0%
- Beta 1.16, yield 0.2%, current ratio 1.33x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PRGS | 29.8% revenue growth vs PEGA's 16.6% |
| Value | PRGS | Lower P/E (4.7x vs 13.4x) |
| Quality / Margins | PEGA | 20.0% margin vs PRGS's 7.5% |
| Stability / Safety | PRGS | Beta 1.01 vs PEGA's 1.16 |
| Dividends | PEGA | 0.2% yield, 1-year raise streak, vs PRGS's 0.1% |
| Momentum (1Y) | PEGA | -20.0% vs PRGS's -53.6% |
| Efficiency (ROA) | PEGA | 23.5% ROA vs PRGS's 3.0%, ROIC 27.2% vs 7.4% |
PRGS vs PEGA — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
PRGS vs PEGA — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPEGALAGGINGPRGS
PRGSProgress Software Cor…
2leads
PEGAPegasystems Inc.
3leads
6 Total Categories
CATEGORYLEADERvs PRGSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
PRGS4/6
Valuation MetricsMultiples, price ratios, and targets
PRGS6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PEGA9/9
Total Returns1Y, 3Y, 5Y total returns with dividends
PEGA4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
PEGA2/2
Income & Cash Flow (Last 12 Months)
PRGS leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
PEGA is the larger business by revenue, generating $1.7B annually — 1.7x PRGS's $978M. PEGA is the more profitable business, keeping 20.0% of every revenue dollar as net income compared to PRGS's 7.5%. On growth, PRGS holds the edge at +17.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PRGSProgress Software… | PEGAPegasystems Inc. |
|---|---|---|
| RevenueTrailing 12 months | $978M | $1.7B |
| EBITDAEarnings before interest/tax | $160M | $193M |
| Net IncomeAfter-tax profit | $73M | $341M |
| Free Cash FlowCash after capex | $229M | $495M |
| Gross MarginGross profit ÷ Revenue | +80.8% | +75.0% |
| Operating MarginEBIT ÷ Revenue | +15.7% | +10.2% |
| Net MarginNet income ÷ Revenue | +7.5% | +20.0% |
| FCF MarginFCF ÷ Revenue | +23.5% | +29.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.5% | -9.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +22.2% | -60.0% |
PRGS leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
PRGS leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 17.0x trailing earnings, PRGS trades at a 1% valuation discount to PEGA's 17.1x P/E. On an enterprise value basis, PRGS's 12.2x EV/EBITDA is more attractive than PEGA's 20.8x.
| Metric | PRGSProgress Software… | PEGAPegasystems Inc. |
|---|---|---|
| Market CapShares × price | $1.2B | $6.1B |
| Enterprise ValueMkt cap + debt − cash | $1.9B | $6.0B |
| Trailing P/EPrice ÷ TTM EPS | 16.98x | 17.08x |
| Forward P/EPrice ÷ next-FY EPS est. | 4.71x | 13.38x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 12.22x | 20.80x |
| Price / SalesMarket cap ÷ Revenue | 1.22x | 3.52x |
| Price / BookPrice ÷ Book value/share | 2.59x | 8.54x |
| Price / FCFMarket cap ÷ FCF | 5.20x | 12.53x |
PRGS leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
PEGA leads this category, winning 9 of 9 comparable metrics.
Profitability & Efficiency
PEGA delivers a 50.2% return on equity — every $100 of shareholder capital generates $50 in annual profit, vs $15 for PRGS. PEGA carries lower financial leverage with a 0.10x debt-to-equity ratio, signaling a more conservative balance sheet compared to PRGS's 1.78x. On the Piotroski fundamental quality scale (0–9), PEGA scores 8/9 vs PRGS's 6/9, reflecting strong financial health.
| Metric | PRGSProgress Software… | PEGAPegasystems Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +15.3% | +50.2% |
| ROA (TTM)Return on assets | +3.0% | +23.5% |
| ROICReturn on invested capital | +7.4% | +27.2% |
| ROCEReturn on capital employed | +8.2% | +33.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 1.78x | 0.10x |
| Net DebtTotal debt minus cash | $756M | -$136M |
| Cash & Equiv.Liquid assets | $95M | $212M |
| Total DebtShort + long-term debt | $851M | $76M |
| Interest CoverageEBIT ÷ Interest expense | 2.16x | 643.17x |
PEGA leads this category, winning 9 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
PEGA leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PRGS five years ago would be worth $6,993 today (with dividends reinvested), compared to $6,202 for PEGA. Over the past 12 months, PEGA leads with a -20.0% total return vs PRGS's -53.6%. The 3-year compound annual growth rate (CAGR) favors PEGA at 18.6% vs PRGS's -18.4% — a key indicator of consistent wealth creation.
| Metric | PRGSProgress Software… | PEGAPegasystems Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -31.4% | -35.0% |
| 1-Year ReturnPast 12 months | -53.6% | -20.0% |
| 3-Year ReturnCumulative with dividends | -45.7% | +66.9% |
| 5-Year ReturnCumulative with dividends | -30.1% | -38.0% |
| 10-Year ReturnCumulative with dividends | +35.0% | +186.0% |
| CAGR (3Y)Annualised 3-year return | -18.4% | +18.6% |
PEGA leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — PRGS and PEGA each lead in 1 of 2 comparable metrics.
Risk & Volatility
PRGS is the less volatile stock with a 1.01 beta — it tends to amplify market swings less than PEGA's 1.16 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PEGA currently trades 53.4% from its 52-week high vs PRGS's 43.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PRGSProgress Software… | PEGAPegasystems Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.01x | 1.16x |
| 52-Week HighHighest price in past year | $65.50 | $68.10 |
| 52-Week LowLowest price in past year | $23.82 | $34.34 |
| % of 52W HighCurrent price vs 52-week peak | +43.0% | +53.4% |
| RSI (14)Momentum oscillator 0–100 | 48.6 | 40.6 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 2.2M |
Evenly matched — PRGS and PEGA each lead in 1 of 2 comparable metrics.
Analyst Outlook
PEGA leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates PRGS as "Buy" and PEGA as "Buy". Consensus price targets imply 59.7% upside for PRGS (target: $45) vs 55.6% for PEGA (target: $57). PEGA is the only dividend payer here at 0.23% yield — a key consideration for income-focused portfolios.
| Metric | PRGSProgress Software… | PEGAPegasystems Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $45.00 | $56.60 |
| # AnalystsCovering analysts | 13 | 23 |
| Dividend YieldAnnual dividend ÷ price | +0.1% | +0.2% |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | $0.02 | $0.08 |
| Buyback YieldShare repurchases ÷ mkt cap | +8.8% | +8.4% |
PEGA leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
PEGA leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). PRGS leads in 2 (Income & Cash Flow, Valuation Metrics). 1 tied.
Best OverallPegasystems Inc. (PEGA)Leads 3 of 6 categories
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PRGS vs PEGA: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PRGS or PEGA a better buy right now?
For growth investors, Progress Software Corporation (PRGS) is the stronger pick with 29.
8% revenue growth year-over-year, versus 16. 6% for Pegasystems Inc. (PEGA). Progress Software Corporation (PRGS) offers the better valuation at 17. 0x trailing P/E (4. 7x forward), making it the more compelling value choice. Analysts rate Progress Software Corporation (PRGS) a "Buy" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — PRGS or PEGA?
On trailing P/E, Progress Software Corporation (PRGS) is the cheapest at 17.
0x versus Pegasystems Inc. at 17. 1x. On forward P/E, Progress Software Corporation is actually cheaper at 4. 7x.
03Which is the better long-term investment — PRGS or PEGA?
Over the past 5 years, Progress Software Corporation (PRGS) delivered a total return of -30.
1%, compared to -38. 0% for Pegasystems Inc. (PEGA). Over 10 years, the gap is even starker: PEGA returned +186. 0% versus PRGS's +35. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — PRGS or PEGA?
By beta (market sensitivity over 5 years), Progress Software Corporation (PRGS) is the lower-risk stock at 1.
01β versus Pegasystems Inc. 's 1. 16β — meaning PEGA is approximately 15% more volatile than PRGS relative to the S&P 500. On balance sheet safety, Pegasystems Inc. (PEGA) carries a lower debt/equity ratio of 10% versus 178% for Progress Software Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — PRGS or PEGA?
By revenue growth (latest reported year), Progress Software Corporation (PRGS) is pulling ahead at 29.
8% versus 16. 6% for Pegasystems Inc. (PEGA). On earnings-per-share growth, the picture is similar: Pegasystems Inc. grew EPS 287. 3% year-over-year, compared to 7. 8% for Progress Software Corporation. Over a 3-year CAGR, PRGS leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — PRGS or PEGA?
Pegasystems Inc.
(PEGA) is the more profitable company, earning 22. 5% net margin versus 7. 5% for Progress Software Corporation — meaning it keeps 22. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PRGS leads at 15. 7% versus 15. 1% for PEGA. At the gross margin level — before operating expenses — PRGS leads at 80. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is PRGS or PEGA more undervalued right now?
On forward earnings alone, Progress Software Corporation (PRGS) trades at 4.
7x forward P/E versus 13. 4x for Pegasystems Inc. — 8. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PRGS: 59. 7% to $45. 00.
08Which pays a better dividend — PRGS or PEGA?
In this comparison, PEGA (0.
2% yield) pays a dividend. PRGS does not pay a meaningful dividend and should not be held primarily for income.
09Is PRGS or PEGA better for a retirement portfolio?
For long-horizon retirement investors, Progress Software Corporation (PRGS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.
01)). Both have compounded well over 10 years (PRGS: +35. 0%, PEGA: +186. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between PRGS and PEGA?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(PRGS: 17.5% · PEGA: -9.6%)Net Margin>
%
(PRGS: 7.5% · PEGA: 20.0%)P/E Ratio<
x
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