PEGA
Pegasystems Inc.
Software - Application
Market Cap$6.15B
5Y Perf.-23.5%
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Stock Comparison
PEGA vs CRM
Revenue, margins, valuation, and 5-year total return — side by side.
CRM
Salesforce, Inc.
Software - Application
Market Cap$174.30B
5Y Perf.+3.7%
PEGA vs CRM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | PEGA | CRM |
|---|---|---|
| Industry | Software - Application | Software - Application |
| Market Cap | $6.15B | $174.30B |
| Revenue (TTM) | $1.70B | $41.52B |
| Net Income (TTM) | $341M | $7.46B |
| Gross Margin | 75.0% | 77.7% |
| Operating Margin | 10.2% | 21.5% |
| Forward P/E | 13.4x | 15.4x |
| Total Debt | $76M | $6.74B |
| Cash & Equiv. | $212M | $7.33B |
PEGA vs CRM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
PEGA
CRM
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Pegasystems Inc. (PEGA) | 100 | 76.5 | -23.5% |
| Salesforce, Inc. (CRM) | 100 | 103.7 | +3.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PEGA vs CRM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PEGA leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Salesforce, Inc. is the stronger pick specifically for capital preservation and lower volatility and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
PEGA
Pegasystems Inc.
The Growth Play
PEGA carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 16.6%, EPS growth 287.3%, 3Y rev CAGR 9.8%
- 186.0% 10Y total return vs CRM's 149.0%
- Lower volatility, beta 1.16, Low D/E 9.6%, current ratio 1.33x
Best for: growth exposure and long-term compounding
CRM
Salesforce, Inc.
The Income Pick
CRM is the clearest fit if your priority is income & stability and defensive.
- Dividend streak 2 yrs, beta 0.82, yield 0.9%
- Beta 0.82, yield 0.9%, current ratio 0.76x
- Beta 0.82 vs PEGA's 1.16
Best for: income & stability and defensive
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PEGA | 16.6% revenue growth vs CRM's 9.6% |
| Value | PEGA | Lower P/E (13.4x vs 15.4x) |
| Quality / Margins | PEGA | 20.0% margin vs CRM's 18.0% |
| Stability / Safety | CRM | Beta 0.82 vs PEGA's 1.16 |
| Dividends | CRM | 0.9% yield, 2-year raise streak, vs PEGA's 0.2% |
| Momentum (1Y) | PEGA | -20.0% vs CRM's -33.1% |
| Efficiency (ROA) | PEGA | 23.5% ROA vs CRM's 6.6%, ROIC 27.2% vs 10.9% |
PEGA vs CRM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
PEGA vs CRM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCRMLAGGINGPEGA
PEGAPegasystems Inc.
2leads
CRMSalesforce, Inc.
3leads
6 Total Categories
CATEGORYLEADERvs PEGAMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CRM5/6
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PEGA7/8
Total Returns1Y, 3Y, 5Y total returns with dividends
PEGA4/6
Risk & VolatilityBeta, volatility, and downside exposure
CRM2/2
Analyst OutlookRatings, price targets, and dividends
CRM2/2
Income & Cash Flow (Last 12 Months)
CRM leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CRM is the larger business by revenue, generating $41.5B annually — 24.4x PEGA's $1.7B. Profitability is closely matched — net margins range from 20.0% (PEGA) to 18.0% (CRM). On growth, CRM holds the edge at +12.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PEGAPegasystems Inc. | CRMSalesforce, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $41.5B |
| EBITDAEarnings before interest/tax | $193M | $11.4B |
| Net IncomeAfter-tax profit | $341M | $7.5B |
| Free Cash FlowCash after capex | $495M | $14.4B |
| Gross MarginGross profit ÷ Revenue | +75.0% | +77.7% |
| Operating MarginEBIT ÷ Revenue | +10.2% | +21.5% |
| Net MarginNet income ÷ Revenue | +20.0% | +18.0% |
| FCF MarginFCF ÷ Revenue | +29.1% | +34.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.6% | +12.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -60.0% | +18.3% |
CRM leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
Evenly matched — PEGA and CRM each lead in 3 of 6 comparable metrics.
Valuation Metrics
At 17.1x trailing earnings, PEGA trades at a 26% valuation discount to CRM's 23.2x P/E. On an enterprise value basis, CRM's 19.5x EV/EBITDA is more attractive than PEGA's 20.8x.
| Metric | PEGAPegasystems Inc. | CRMSalesforce, Inc. |
|---|---|---|
| Market CapShares × price | $6.1B | $174.3B |
| Enterprise ValueMkt cap + debt − cash | $6.0B | $173.7B |
| Trailing P/EPrice ÷ TTM EPS | 17.08x | 23.23x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.38x | 15.39x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.90x |
| EV / EBITDAEnterprise value multiple | 20.80x | 19.48x |
| Price / SalesMarket cap ÷ Revenue | 3.52x | 4.20x |
| Price / BookPrice ÷ Book value/share | 8.54x | 2.93x |
| Price / FCFMarket cap ÷ FCF | 12.53x | 12.10x |
Evenly matched — PEGA and CRM each lead in 3 of 6 comparable metrics.
Profitability & Efficiency
PEGA leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
PEGA delivers a 50.2% return on equity — every $100 of shareholder capital generates $50 in annual profit, vs $13 for CRM. PEGA carries lower financial leverage with a 0.10x debt-to-equity ratio, signaling a more conservative balance sheet compared to CRM's 0.11x.
| Metric | PEGAPegasystems Inc. | CRMSalesforce, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +50.2% | +12.6% |
| ROA (TTM)Return on assets | +23.5% | +6.6% |
| ROICReturn on invested capital | +27.2% | +10.9% |
| ROCEReturn on capital employed | +33.4% | +11.9% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 8 |
| Debt / EquityFinancial leverage | 0.10x | 0.11x |
| Net DebtTotal debt minus cash | -$136M | -$590M |
| Cash & Equiv.Liquid assets | $212M | $7.3B |
| Total DebtShort + long-term debt | $76M | $6.7B |
| Interest CoverageEBIT ÷ Interest expense | 643.17x | 44.14x |
PEGA leads this category, winning 7 of 8 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 CRM five years ago would be worth $8,479 today (with dividends reinvested), compared to $6,202 for PEGA. Over the past 12 months, PEGA leads with a -20.0% total return vs CRM's -33.1%. The 3-year compound annual growth rate (CAGR) favors PEGA at 18.6% vs CRM's -2.2% — a key indicator of consistent wealth creation.
| Metric | PEGAPegasystems Inc. | CRMSalesforce, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -35.0% | -28.4% |
| 1-Year ReturnPast 12 months | -20.0% | -33.1% |
| 3-Year ReturnCumulative with dividends | +66.9% | -6.6% |
| 5-Year ReturnCumulative with dividends | -38.0% | -15.2% |
| 10-Year ReturnCumulative with dividends | +186.0% | +149.0% |
| CAGR (3Y)Annualised 3-year return | +18.6% | -2.2% |
PEGA leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
CRM leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
CRM is the less volatile stock with a 0.82 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. CRM currently trades 61.2% from its 52-week high vs PEGA's 53.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PEGAPegasystems Inc. | CRMSalesforce, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.16x | 0.82x |
| 52-Week HighHighest price in past year | $68.10 | $296.05 |
| 52-Week LowLowest price in past year | $34.34 | $163.52 |
| % of 52W HighCurrent price vs 52-week peak | +53.4% | +61.2% |
| RSI (14)Momentum oscillator 0–100 | 40.6 | 54.0 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 12.6M |
CRM leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
CRM leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates PEGA as "Buy" and CRM as "Buy". Consensus price targets imply 58.4% upside for CRM (target: $287) vs 55.6% for PEGA (target: $57). For income investors, CRM offers the higher dividend yield at 0.92% vs PEGA's 0.23%.
| Metric | PEGAPegasystems Inc. | CRMSalesforce, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $56.60 | $287.00 |
| # AnalystsCovering analysts | 23 | 97 |
| Dividend YieldAnnual dividend ÷ price | +0.2% | +0.9% |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | $0.08 | $1.66 |
| Buyback YieldShare repurchases ÷ mkt cap | +8.4% | +7.2% |
CRM leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
CRM leads in 3 of 6 categories (Income & Cash Flow, Risk & Volatility). PEGA leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Best OverallSalesforce, Inc. (CRM)Leads 3 of 6 categories
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PEGA vs CRM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PEGA or CRM a better buy right now?
For growth investors, Pegasystems Inc.
(PEGA) is the stronger pick with 16. 6% revenue growth year-over-year, versus 9. 6% for Salesforce, Inc. (CRM). Pegasystems Inc. (PEGA) offers the better valuation at 17. 1x trailing P/E (13. 4x 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 CRM?
On trailing P/E, Pegasystems Inc.
(PEGA) is the cheapest at 17. 1x versus Salesforce, Inc. at 23. 2x. On forward P/E, Pegasystems Inc. is actually cheaper at 13. 4x.
03Which is the better long-term investment — PEGA or CRM?
Over the past 5 years, Salesforce, Inc.
(CRM) delivered a total return of -15. 2%, compared to -38. 0% for Pegasystems Inc. (PEGA). Over 10 years, the gap is even starker: PEGA returned +186. 0% versus CRM's +149. 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 — PEGA or CRM?
By beta (market sensitivity over 5 years), Salesforce, Inc.
(CRM) is the lower-risk stock at 0. 82β versus Pegasystems Inc. 's 1. 16β — meaning PEGA is approximately 42% more volatile than CRM relative to the S&P 500. On balance sheet safety, Pegasystems Inc. (PEGA) carries a lower debt/equity ratio of 10% versus 11% for Salesforce, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — PEGA or CRM?
By revenue growth (latest reported year), Pegasystems Inc.
(PEGA) is pulling ahead at 16. 6% versus 9. 6% for Salesforce, Inc. (CRM). On earnings-per-share growth, the picture is similar: Pegasystems Inc. grew EPS 287. 3% year-over-year, compared to 22. 6% for Salesforce, Inc.. Over a 3-year CAGR, PEGA leads at 9. 8% 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 — PEGA or CRM?
Pegasystems Inc.
(PEGA) is the more profitable company, earning 22. 5% net margin versus 18. 0% for Salesforce, Inc. — meaning it keeps 22. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CRM leads at 21. 5% versus 15. 1% for PEGA. At the gross margin level — before operating expenses — CRM leads at 77. 7%, 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 PEGA or CRM more undervalued right now?
On forward earnings alone, Pegasystems Inc.
(PEGA) trades at 13. 4x forward P/E versus 15. 4x for Salesforce, Inc. — 2. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CRM: 58. 4% to $287. 00.
08Which pays a better dividend — PEGA or CRM?
All stocks in this comparison pay dividends.
Salesforce, Inc. (CRM) offers the highest yield at 0. 9%, versus 0. 2% for Pegasystems Inc. (PEGA).
09Is PEGA or CRM better for a retirement portfolio?
For long-horizon retirement investors, Salesforce, Inc.
(CRM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 0. 9% yield, +149. 0% 10Y return). Both have compounded well over 10 years (CRM: +149. 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 PEGA and CRM?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: PEGA is a small-cap high-growth stock; CRM is a mid-cap quality compounder stock. CRM pays a dividend while PEGA does not, making them suitable for different income and tax situations. 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>
%
(PEGA: -9.6% · CRM: 12.1%)Net Margin>
%
(PEGA: 20.0% · CRM: 18.0%)P/E Ratio<
x
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