Comprehensive Stock Comparison
Compare Braze, Inc. (BRZE) vs Pegasystems Inc. (PEGA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | BRZE | 25.8% revenue growth vs PEGA's 16.6% |
| Value | PEGA | Lower P/E (16.2x vs 45.1x) |
| Quality / Margins | PEGA | 16.0% net margin vs BRZE's -16.8% |
| Stability / Safety | BRZE | Beta 1.34 vs PEGA's 1.43 |
| Dividends | PEGA | 0.2% yield; 1-year raise streak; BRZE pays no meaningful dividend |
| Momentum (1Y) | PEGA | +11.7% vs BRZE's -48.6% |
| Efficiency (ROA) | PEGA | 21.5% ROA vs BRZE's -11.2%, ROIC 27.5% vs -19.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Braze operates a cloud-based customer engagement platform that helps brands communicate with consumers across mobile, web, and email channels. It generates revenue primarily through subscription fees for its SaaS platform — typically based on monthly active users and message volume — with enterprise contracts forming the bulk of its business. The company's competitive advantage lies in its real-time data processing capabilities and sophisticated segmentation tools that enable personalized marketing at scale.
Pegasystems is a software company that provides enterprise applications and platforms for customer engagement and business process automation. It generates revenue primarily through software licensing and cloud subscriptions — with its Pega Platform and Pega Infinity solutions — along with related consulting and support services. The company's key advantage is its unified low-code platform that combines customer relationship management, artificial intelligence, and process automation into a single system, creating switching costs for enterprise clients.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
PEGA leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). BRZE leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
PEGA is the larger business by revenue, generating $1.7B annually — 2.5x BRZE's $693M. PEGA is the more profitable business, keeping 16.0% of every revenue dollar as net income compared to BRZE's -16.8%. On growth, BRZE holds the edge at +25.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | BRZEBraze, Inc. | PEGAPegasystems Inc. |
|---|---|---|
| RevenueTrailing 12 months | $693M | $1.7B |
| EBITDAEarnings before interest/tax | -$135M | $342M |
| Net IncomeAfter-tax profit | -$117M | $278M |
| Free Cash FlowCash after capex | $63M | $439M |
| Gross MarginGross profit ÷ Revenue | +68.1% | +75.7% |
| Operating MarginEBIT ÷ Revenue | -19.9% | +17.4% |
| Net MarginNet income ÷ Revenue | -16.8% | +16.0% |
| FCF MarginFCF ÷ Revenue | +9.0% | +25.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +25.5% | +17.3% |
| EPS Growth (YoY)Latest quarter vs prior year | -22.2% | +3.9% |
Valuation Metrics
| Metric | BRZEBraze, Inc. | PEGAPegasystems Inc. |
|---|---|---|
| Market CapShares × price | $189M | $7.5B |
| Enterprise ValueMkt cap + debt − cash | $193M | $7.3B |
| Trailing P/EPrice ÷ TTM EPS | -18.62x | 20.53x |
| Forward P/EPrice ÷ next-FY EPS est. | 45.12x | 16.16x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 27.77x |
| Price / SalesMarket cap ÷ Revenue | 0.32x | 4.27x |
| Price / BookPrice ÷ Book value/share | 4.09x | 10.26x |
| Price / FCFMarket cap ÷ FCF | 8.06x | 14.76x |
Profitability & Efficiency
PEGA delivers a 46.6% return on equity — every $100 of shareholder capital generates $47 in annual profit, vs $-19 for BRZE. PEGA carries lower financial leverage with a 0.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to BRZE's 0.18x. On the Piotroski fundamental quality scale (0–9), PEGA scores 8/9 vs BRZE's 6/9, reflecting strong financial health.
| Metric | BRZEBraze, Inc. | PEGAPegasystems Inc. |
|---|---|---|
| ROE (TTM)Return on equity | -19.4% | +46.6% |
| ROA (TTM)Return on assets | -11.2% | +21.5% |
| ROICReturn on invested capital | -19.4% | +27.5% |
| ROCEReturn on capital employed | -22.9% | +33.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 8 |
| Debt / EquityFinancial leverage | 0.18x | 0.08x |
| Net DebtTotal debt minus cash | $4M | -$152M |
| Cash & Equiv.Liquid assets | $83M | $212M |
| Total DebtShort + long-term debt | $87M | $61M |
| Interest CoverageEBIT ÷ Interest expense | — | 112.43x |
Total Returns (with DRIP)
A $10,000 investment in PEGA five years ago would be worth $6,478 today (with dividends reinvested), compared to $2,033 for BRZE. Over the past 12 months, PEGA leads with a +11.7% total return vs BRZE's -48.6%. The 3-year compound annual growth rate (CAGR) favors PEGA at 23.8% vs BRZE's -14.8% — a key indicator of consistent wealth creation.
| Metric | BRZEBraze, Inc. | PEGAPegasystems Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -41.7% | -21.9% |
| 1-Year ReturnPast 12 months | -48.6% | +11.7% |
| 3-Year ReturnCumulative with dividends | -38.1% | +89.5% |
| 5-Year ReturnCumulative with dividends | -79.7% | -35.2% |
| 10-Year ReturnCumulative with dividends | -79.7% | +265.1% |
| CAGR (3Y)Annualised 3-year return | -14.8% | +23.8% |
Risk & Volatility
BRZE is the less volatile stock with a 1.34 beta — it tends to amplify market swings less than PEGA's 1.43 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PEGA currently trades 64.2% from its 52-week high vs BRZE's 43.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | BRZEBraze, Inc. | PEGAPegasystems Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.34x | 1.43x |
| 52-Week HighHighest price in past year | $43.89 | $68.10 |
| 52-Week LowLowest price in past year | $15.26 | $29.84 |
| % of 52W HighCurrent price vs 52-week peak | +43.3% | +64.2% |
| RSI (14)Momentum oscillator 0–100 | 44.9 | 49.5 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 1.7M |
Analyst Outlook
Wall Street rates BRZE as "Buy" and PEGA as "Buy". Consensus price targets imply 121.2% upside for BRZE (target: $42) vs 33.2% for PEGA (target: $58). PEGA is the only dividend payer here at 0.19% yield — a key consideration for income-focused portfolios.
| Metric | BRZEBraze, Inc. | PEGAPegasystems Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $42.00 | $58.25 |
| # AnalystsCovering analysts | 25 | 23 |
| Dividend YieldAnnual dividend ÷ price | — | +0.2% |
| Dividend StreakConsecutive years of raises | — | 1 |
| Dividend / ShareAnnual DPS | — | $0.08 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.2% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Nov 21 | Feb 26 | Change |
|---|---|---|---|
| Braze, Inc. (BRZE) | 100 | 22.21 | -77.8% |
| Pegasystems Inc. (PEGA) | 100 | 79.68 | -20.3% |
Pegasystems Inc. (PEGA) returned -35% over 5 years vs Braze, Inc. (BRZE)'s -80%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Braze, Inc. (BRZE) | $96M | $593M | +515.8% |
| Pegasystems Inc. (PEGA) | $750M | $1.7B | +132.7% |
Pegasystems Inc.'s revenue grew from $750M (2016) to $1.7B (2025) — a 9.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Braze, Inc. (BRZE) | -33.0% | -17.5% | +47.0% |
| Pegasystems Inc. (PEGA) | 3.6% | 22.5% | +526.5% |
Pegasystems Inc.'s net margin went from 4% (2016) to 23% (2025).
Chart 4P/E Ratio History — 5 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Pegasystems Inc. (PEGA) | 39.6 | 28 | -29.3% |
Pegasystems Inc. has traded in a 28x–374x P/E range over 5 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Braze, Inc. (BRZE) | -1.87 | -1.02 | +45.5% |
| Pegasystems Inc. (PEGA) | 0.17 | 2.13 | +1152.9% |
Pegasystems Inc.'s EPS grew from $0.17 (2016) to $2.13 (2025) — a 32% CAGR.
Chart 6Free Cash Flow — 5 Years
Braze, Inc. generated $23M FCF in 2025 (+325% vs 2021). Pegasystems Inc. generated $505M FCF in 2025 (+1663% vs 2021).
BRZE vs PEGA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is BRZE or PEGA a better buy right now?
Pegasystems Inc. (PEGA) offers the better valuation at 20.5x trailing P/E (16.2x forward), making it the more compelling value choice. Analysts rate Braze, Inc. (BRZE) a "Buy" — based on 25 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 — BRZE or PEGA?
On forward P/E, Pegasystems Inc. is actually cheaper at 16.2x.
03Which is the better long-term investment — BRZE or PEGA?
Over the past 5 years, Pegasystems Inc. (PEGA) delivered a total return of -35.2%, compared to -79.7% for Braze, Inc. (BRZE). A $10,000 investment in PEGA five years ago would be worth approximately $6K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PEGA returned +265.1% versus BRZE's -79.7%. 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 — BRZE or PEGA?
By beta (market sensitivity over 5 years), Braze, Inc. (BRZE) is the lower-risk stock at 1.34β versus Pegasystems Inc.'s 1.43β — meaning PEGA is approximately 7% more volatile than BRZE relative to the S&P 500. On balance sheet safety, Pegasystems Inc. (PEGA) carries a lower debt/equity ratio of 8% versus 18% for Braze, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — BRZE or PEGA?
Pegasystems Inc. (PEGA) is the more profitable company, earning 22.5% net margin versus -17.5% for Braze, Inc. — meaning it keeps 22.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PEGA leads at 15.1% versus -20.6% for BRZE. At the gross margin level — before operating expenses — PEGA leads at 75.9%, 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.
06Is BRZE or PEGA more undervalued right now?
On forward earnings alone, Pegasystems Inc. (PEGA) trades at 16.2x forward P/E versus 45.1x for Braze, Inc. — 29.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BRZE: 121.2% to $42.00.
07Which pays a better dividend — BRZE or PEGA?
In this comparison, PEGA (0.2% yield) pays a dividend. BRZE does not pay a meaningful dividend and should not be held primarily for income.
08Is BRZE or PEGA better for a retirement portfolio?
For long-horizon retirement investors, Pegasystems Inc. (PEGA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+265.1% 10Y return). Both have compounded well over 10 years (PEGA: +265.1%, BRZE: -79.7%), 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.
09What are the main differences between BRZE 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.