Comprehensive Stock Comparison
Compare Pegasystems Inc. (PEGA) vs Apple Inc. (AAPL) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | PEGA | 16.6% revenue growth vs AAPL's 6.4% |
| Value | PEGA | Lower P/E (16.2x vs 31.1x) |
| Quality / Margins | AAPL | 27.0% net margin vs PEGA's 16.0% |
| Stability / Safety | AAPL | Beta 1.28 vs PEGA's 1.43 |
| Dividends | AAPL | 0.4% yield, 14-year raise streak, vs PEGA's 0.2% |
| Momentum (1Y) | PEGA | +11.7% vs AAPL's +9.7% |
| Efficiency (ROA) | AAPL | 31.1% ROA vs PEGA's 21.5%, ROIC 64.5% vs 27.5% |
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
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.
Apple is a technology giant that designs and sells premium consumer electronics — most famously the iPhone — along with related software and services. It generates revenue primarily from hardware sales (roughly 80% of total) and a fast-growing services segment (around 20%) that includes the App Store, subscriptions, and licensing. Its key competitive advantage is a powerful ecosystem that locks users into its hardware, software, and services through seamless integration and high switching costs.
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
AAPL leads in 2 of 6 categories (Risk & Volatility, Analyst Outlook). PEGA leads in 1 (Valuation Metrics). 3 tied.
Financial Metrics (TTM)
AAPL is the larger business by revenue, generating $435.6B annually — 251.5x PEGA's $1.7B. AAPL is the more profitable business, keeping 27.0% of every revenue dollar as net income compared to PEGA's 16.0%.
| Metric | PEGAPegasystems Inc. | AAPLApple Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $435.6B |
| EBITDAEarnings before interest/tax | $342M | $152.9B |
| Net IncomeAfter-tax profit | $278M | $117.8B |
| Free Cash FlowCash after capex | $439M | $123.3B |
| Gross MarginGross profit ÷ Revenue | +75.7% | +47.3% |
| Operating MarginEBIT ÷ Revenue | +17.4% | +32.4% |
| Net MarginNet income ÷ Revenue | +16.0% | +27.0% |
| FCF MarginFCF ÷ Revenue | +25.4% | +28.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.3% | +15.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +3.9% | +18.3% |
Valuation Metrics
At 20.5x trailing earnings, PEGA trades at a 42% valuation discount to AAPL's 35.4x P/E. On an enterprise value basis, AAPL's 27.5x EV/EBITDA is more attractive than PEGA's 27.8x.
| Metric | PEGAPegasystems Inc. | AAPLApple Inc. |
|---|---|---|
| Market CapShares × price | $7.5B | $3.88T |
| Enterprise ValueMkt cap + debt − cash | $7.3B | $3.97T |
| Trailing P/EPrice ÷ TTM EPS | 20.53x | 35.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.16x | 31.15x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.98x |
| EV / EBITDAEnterprise value multiple | 27.77x | 27.45x |
| Price / SalesMarket cap ÷ Revenue | 4.27x | 9.33x |
| Price / BookPrice ÷ Book value/share | 10.26x | 53.76x |
| Price / FCFMarket cap ÷ FCF | 14.76x | 39.33x |
Profitability & Efficiency
AAPL delivers a 133.5% return on equity — every $100 of shareholder capital generates $134 in annual profit, vs $47 for PEGA. PEGA carries lower financial leverage with a 0.08x debt-to-equity ratio, signaling a more conservative balance sheet compared to AAPL's 1.67x. On the Piotroski fundamental quality scale (0–9), PEGA scores 8/9 vs AAPL's 7/9, reflecting strong financial health.
| Metric | PEGAPegasystems Inc. | AAPLApple Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +46.6% | +133.5% |
| ROA (TTM)Return on assets | +21.5% | +31.1% |
| ROICReturn on invested capital | +27.5% | +64.5% |
| ROCEReturn on capital employed | +33.4% | +69.6% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 7 |
| Debt / EquityFinancial leverage | 0.08x | 1.67x |
| Net DebtTotal debt minus cash | -$152M | $89.7B |
| Cash & Equiv.Liquid assets | $212M | $33.5B |
| Total DebtShort + long-term debt | $61M | $123.3B |
| Interest CoverageEBIT ÷ Interest expense | 112.43x | — |
Total Returns (with DRIP)
A $10,000 investment in AAPL five years ago would be worth $21,049 today (with dividends reinvested), compared to $6,478 for PEGA. Over the past 12 months, PEGA leads with a +11.7% total return vs AAPL's +9.7%. The 3-year compound annual growth rate (CAGR) favors PEGA at 23.8% vs AAPL's 21.9% — a key indicator of consistent wealth creation.
| Metric | PEGAPegasystems Inc. | AAPLApple Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -21.9% | -2.4% |
| 1-Year ReturnPast 12 months | +11.7% | +9.7% |
| 3-Year ReturnCumulative with dividends | +89.5% | +81.2% |
| 5-Year ReturnCumulative with dividends | -35.2% | +110.5% |
| 10-Year ReturnCumulative with dividends | +265.1% | +1027.4% |
| CAGR (3Y)Annualised 3-year return | +23.8% | +21.9% |
Risk & Volatility
AAPL is the less volatile stock with a 1.28 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. AAPL currently trades 91.5% from its 52-week high vs PEGA's 64.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PEGAPegasystems Inc. | AAPLApple Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.43x | 1.28x |
| 52-Week HighHighest price in past year | $68.10 | $288.61 |
| 52-Week LowLowest price in past year | $29.84 | $169.21 |
| % of 52W HighCurrent price vs 52-week peak | +64.2% | +91.5% |
| RSI (14)Momentum oscillator 0–100 | 49.5 | 57.5 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 40.9M |
Analyst Outlook
Wall Street rates PEGA as "Buy" and AAPL as "Buy". Consensus price targets imply 33.2% upside for PEGA (target: $58) vs 14.7% for AAPL (target: $303). For income investors, AAPL offers the higher dividend yield at 0.39% vs PEGA's 0.19%.
| Metric | PEGAPegasystems Inc. | AAPLApple Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $58.25 | $303.11 |
| # AnalystsCovering analysts | 23 | 109 |
| Dividend YieldAnnual dividend ÷ price | +0.2% | +0.4% |
| Dividend StreakConsecutive years of raises | 1 | 14 |
| Dividend / ShareAnnual DPS | $0.08 | $1.03 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.2% | +2.3% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Pegasystems Inc. (PEGA) | 100 | 96.35 | -3.6% |
| Apple Inc. (AAPL) | 100 | 361.46 | +261.5% |
Apple Inc. (AAPL) returned +110% over 5 years vs Pegasystems Inc. (PEGA)'s -35%. A $10,000 investment in AAPL 5 years ago would be worth $21,049 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Pegasystems Inc. (PEGA) | $750M | $1.7B | +132.7% |
| Apple Inc. (AAPL) | $215.6B | $416.2B | +93.0% |
Pegasystems Inc.'s revenue grew from $750M (2016) to $1.7B (2025) — a 9.8% CAGR. Apple Inc.'s revenue grew from $215.6B (2016) to $416.2B (2025) — a 7.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Pegasystems Inc. (PEGA) | 3.6% | 22.5% | +526.5% |
| Apple Inc. (AAPL) | 21.2% | 26.9% | +27.0% |
Pegasystems Inc.'s net margin went from 4% (2016) to 23% (2025). Apple Inc.'s net margin went from 21% (2016) to 27% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Pegasystems Inc. (PEGA) | 39.6 | 28 | -29.3% |
| Apple Inc. (AAPL) | 18.4 | 36.4 | +97.8% |
Pegasystems Inc. has traded in a 28x–374x P/E range over 5 years; current trailing P/E is ~21x. Apple Inc. has traded in a 13x–41x P/E range over 9 years; current trailing P/E is ~35x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Pegasystems Inc. (PEGA) | 0.17 | 2.13 | +1152.9% |
| Apple Inc. (AAPL) | 2.08 | 7.46 | +258.7% |
Pegasystems Inc.'s EPS grew from $0.17 (2016) to $2.13 (2025) — a 32% CAGR. Apple Inc.'s EPS grew from $2.08 (2016) to $7.46 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
Pegasystems Inc. generated $505M FCF in 2025 (+1663% vs 2021). Apple Inc. generated $99B FCF in 2025 (+6% vs 2021).
PEGA vs AAPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PEGA or AAPL 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 Pegasystems Inc. (PEGA) a "Buy" — based on 23 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 — PEGA or AAPL?
On trailing P/E, Pegasystems Inc. (PEGA) is the cheapest at 20.5x versus Apple Inc. at 35.4x. On forward P/E, Pegasystems Inc. is actually cheaper at 16.2x.
03Which is the better long-term investment — PEGA or AAPL?
Over the past 5 years, Apple Inc. (AAPL) delivered a total return of +110.5%, compared to -35.2% for Pegasystems Inc. (PEGA). A $10,000 investment in AAPL five years ago would be worth approximately $21K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AAPL returned +1027% versus PEGA's +265.1%. 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 — PEGA or AAPL?
By beta (market sensitivity over 5 years), Apple Inc. (AAPL) is the lower-risk stock at 1.28β versus Pegasystems Inc.'s 1.43β — meaning PEGA is approximately 12% more volatile than AAPL relative to the S&P 500. On balance sheet safety, Pegasystems Inc. (PEGA) carries a lower debt/equity ratio of 8% versus 167% for Apple Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — PEGA or AAPL?
Apple Inc. (AAPL) is the more profitable company, earning 26.9% net margin versus 22.5% for Pegasystems Inc. — meaning it keeps 26.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AAPL leads at 32.0% versus 15.1% for PEGA. 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 PEGA or AAPL more undervalued right now?
On forward earnings alone, Pegasystems Inc. (PEGA) trades at 16.2x forward P/E versus 31.1x for Apple Inc. — 15.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PEGA: 33.2% to $58.25.
07Which pays a better dividend — PEGA or AAPL?
All stocks in this comparison pay dividends. Apple Inc. (AAPL) offers the highest yield at 0.4%, versus 0.2% for Pegasystems Inc. (PEGA).
08Is PEGA or AAPL better for a retirement portfolio?
For long-horizon retirement investors, Apple Inc. (AAPL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.28), +1027% 10Y return). Both have compounded well over 10 years (AAPL: +1027%, PEGA: +265.1%), 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 PEGA and AAPL?
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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