PEGA
Pegasystems Inc.
Software - Application
Market Cap$6.15B
5Y Perf.-23.5%
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Stock Comparison
PEGA vs POWI
Revenue, margins, valuation, and 5-year total return — side by side.
POWI
Power Integrations, Inc.
Semiconductors
Market Cap$4.36B
5Y Perf.+44.4%
PEGA vs POWI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | PEGA | POWI |
|---|---|---|
| Industry | Software - Application | Semiconductors |
| Market Cap | $6.15B | $4.36B |
| Revenue (TTM) | $1.70B | $444M |
| Net Income (TTM) | $341M | $22M |
| Gross Margin | 75.0% | 54.5% |
| Operating Margin | 10.2% | 5.8% |
| Forward P/E | 13.4x | 60.5x |
| Total Debt | $76M | $0.00 |
| Cash & Equiv. | $212M | $59M |
PEGA vs POWI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
PEGA
POWI
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Pegasystems Inc. (PEGA) | 100 | 76.5 | -23.5% |
| Power Integrations,… (POWI) | 100 | 144.4 | +44.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PEGA vs POWI
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. Power Integrations, Inc. is the stronger pick specifically for dividend income and shareholder returns and recent price momentum and sentiment. 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 sleep-well-at-night.
- Rev growth 16.6%, EPS growth 287.3%, 3Y rev CAGR 9.8%
- Lower volatility, beta 1.16, Low D/E 9.6%, current ratio 1.33x
- 16.6% revenue growth vs POWI's 5.9%
Best for: growth exposure and sleep-well-at-night
POWI
Power Integrations, Inc.
The Income Pick
POWI is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 18 yrs, beta 2.08, yield 1.1%
- 264.8% 10Y total return vs PEGA's 186.0%
- Beta 2.08, yield 1.1%, current ratio 6.51x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PEGA | 16.6% revenue growth vs POWI's 5.9% |
| Value | PEGA | Lower P/E (13.4x vs 60.5x) |
| Quality / Margins | PEGA | 20.0% margin vs POWI's 5.0% |
| Stability / Safety | PEGA | Beta 1.16 vs POWI's 2.08 |
| Dividends | POWI | 1.1% yield, 18-year raise streak, vs PEGA's 0.2% |
| Momentum (1Y) | POWI | +57.8% vs PEGA's -20.0% |
| Efficiency (ROA) | PEGA | 23.5% ROA vs POWI's 2.8%, ROIC 27.2% vs 2.4% |
PEGA vs POWI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
Segment breakdown not available.
PEGA vs POWI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPEGALAGGINGPOWI
POWIPower Integrations, I…
2leads
PEGAPegasystems Inc.
3leads
6 Total Categories
CATEGORYLEADERvs POWIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
PEGA4/6
Valuation MetricsMultiples, price ratios, and targets
PEGA5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PEGA6/7
Total Returns1Y, 3Y, 5Y total returns with dividends
POWI4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
POWI2/2
Income & Cash Flow (Last 12 Months)
PEGA 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 — 3.8x POWI's $444M. PEGA is the more profitable business, keeping 20.0% of every revenue dollar as net income compared to POWI's 5.0%. On growth, POWI holds the edge at -1.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PEGAPegasystems Inc. | POWIPower Integration… |
|---|---|---|
| RevenueTrailing 12 months | $1.7B | $444M |
| EBITDAEarnings before interest/tax | $193M | $54M |
| Net IncomeAfter-tax profit | $341M | $22M |
| Free Cash FlowCash after capex | $495M | $87M |
| Gross MarginGross profit ÷ Revenue | +75.0% | +54.5% |
| Operating MarginEBIT ÷ Revenue | +10.2% | +5.8% |
| Net MarginNet income ÷ Revenue | +20.0% | +5.0% |
| FCF MarginFCF ÷ Revenue | +29.1% | +19.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | -9.6% | -1.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -60.0% | +50.0% |
PEGA leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
PEGA leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 17.1x trailing earnings, PEGA trades at a 91% valuation discount to POWI's 200.6x P/E. On an enterprise value basis, PEGA's 20.8x EV/EBITDA is more attractive than POWI's 86.9x.
| Metric | PEGAPegasystems Inc. | POWIPower Integration… |
|---|---|---|
| Market CapShares × price | $6.1B | $4.4B |
| Enterprise ValueMkt cap + debt − cash | $6.0B | $4.3B |
| Trailing P/EPrice ÷ TTM EPS | 17.08x | 200.59x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.38x | 60.46x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 20.80x | 86.90x |
| Price / SalesMarket cap ÷ Revenue | 3.52x | 9.83x |
| Price / BookPrice ÷ Book value/share | 8.54x | 6.55x |
| Price / FCFMarket cap ÷ FCF | 12.53x | 50.02x |
PEGA leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
PEGA leads this category, winning 6 of 7 comparable metrics.
Profitability & Efficiency
PEGA delivers a 50.2% return on equity — every $100 of shareholder capital generates $50 in annual profit, vs $3 for POWI. On the Piotroski fundamental quality scale (0–9), PEGA scores 8/9 vs POWI's 6/9, reflecting strong financial health.
| Metric | PEGAPegasystems Inc. | POWIPower Integration… |
|---|---|---|
| ROE (TTM)Return on equity | +50.2% | +3.2% |
| ROA (TTM)Return on assets | +23.5% | +2.8% |
| ROICReturn on invested capital | +27.2% | +2.4% |
| ROCEReturn on capital employed | +33.4% | +2.9% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 0.10x | — |
| Net DebtTotal debt minus cash | -$136M | -$59M |
| Cash & Equiv.Liquid assets | $212M | $59M |
| Total DebtShort + long-term debt | $76M | $0 |
| Interest CoverageEBIT ÷ Interest expense | 643.17x | — |
PEGA leads this category, winning 6 of 7 comparable metrics.
Total Returns (Dividends Reinvested)
POWI leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in POWI five years ago would be worth $10,143 today (with dividends reinvested), compared to $6,202 for PEGA. Over the past 12 months, POWI leads with a +57.8% total return vs PEGA's -20.0%. The 3-year compound annual growth rate (CAGR) favors PEGA at 18.6% vs POWI's 0.6% — a key indicator of consistent wealth creation.
| Metric | PEGAPegasystems Inc. | POWIPower Integration… |
|---|---|---|
| YTD ReturnYear-to-date | -35.0% | +110.3% |
| 1-Year ReturnPast 12 months | -20.0% | +57.8% |
| 3-Year ReturnCumulative with dividends | +66.9% | +1.7% |
| 5-Year ReturnCumulative with dividends | -38.0% | +1.4% |
| 10-Year ReturnCumulative with dividends | +186.0% | +264.8% |
| CAGR (3Y)Annualised 3-year return | +18.6% | +0.6% |
POWI leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — PEGA and POWI each lead in 1 of 2 comparable metrics.
Risk & Volatility
PEGA is the less volatile stock with a 1.16 beta — it tends to amplify market swings less than POWI's 2.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. POWI currently trades 99.1% 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. | POWIPower Integration… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.16x | 2.08x |
| 52-Week HighHighest price in past year | $68.10 | $78.94 |
| 52-Week LowLowest price in past year | $34.34 | $30.86 |
| % of 52W HighCurrent price vs 52-week peak | +53.4% | +99.1% |
| RSI (14)Momentum oscillator 0–100 | 40.6 | 75.1 |
| Avg Volume (50D)Average daily shares traded | 2.2M | 948K |
Evenly matched — PEGA and POWI each lead in 1 of 2 comparable metrics.
Analyst Outlook
POWI leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates PEGA as "Buy" and POWI as "Buy". Consensus price targets imply 55.6% upside for PEGA (target: $57) vs 1.0% for POWI (target: $79). For income investors, POWI offers the higher dividend yield at 1.07% vs PEGA's 0.23%.
| Metric | PEGAPegasystems Inc. | POWIPower Integration… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $56.60 | $79.00 |
| # AnalystsCovering analysts | 23 | 16 |
| Dividend YieldAnnual dividend ÷ price | +0.2% | +1.1% |
| Dividend StreakConsecutive years of raises | 1 | 18 |
| Dividend / ShareAnnual DPS | $0.08 | $0.84 |
| Buyback YieldShare repurchases ÷ mkt cap | +8.4% | +2.3% |
POWI leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
PEGA leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). POWI leads in 2 (Total Returns, Analyst Outlook). 1 tied.
Best OverallPegasystems Inc. (PEGA)Leads 3 of 6 categories
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PEGA vs POWI: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PEGA or POWI a better buy right now?
For growth investors, Pegasystems Inc.
(PEGA) is the stronger pick with 16. 6% revenue growth year-over-year, versus 5. 9% for Power Integrations, Inc. (POWI). 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 POWI?
On trailing P/E, Pegasystems Inc.
(PEGA) is the cheapest at 17. 1x versus Power Integrations, Inc. at 200. 6x. On forward P/E, Pegasystems Inc. is actually cheaper at 13. 4x.
03Which is the better long-term investment — PEGA or POWI?
Over the past 5 years, Power Integrations, Inc.
(POWI) delivered a total return of +1. 4%, compared to -38. 0% for Pegasystems Inc. (PEGA). Over 10 years, the gap is even starker: POWI returned +264. 8% versus PEGA's +186. 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 POWI?
By beta (market sensitivity over 5 years), Pegasystems Inc.
(PEGA) is the lower-risk stock at 1. 16β versus Power Integrations, Inc. 's 2. 08β — meaning POWI is approximately 80% more volatile than PEGA relative to the S&P 500.
05Which is growing faster — PEGA or POWI?
By revenue growth (latest reported year), Pegasystems Inc.
(PEGA) is pulling ahead at 16. 6% versus 5. 9% for Power Integrations, Inc. (POWI). On earnings-per-share growth, the picture is similar: Pegasystems Inc. grew EPS 287. 3% year-over-year, compared to -30. 4% for Power Integrations, 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 POWI?
Pegasystems Inc.
(PEGA) is the more profitable company, earning 22. 5% net margin versus 5. 0% for Power Integrations, 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 4. 8% for POWI. 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.
07Is PEGA or POWI more undervalued right now?
On forward earnings alone, Pegasystems Inc.
(PEGA) trades at 13. 4x forward P/E versus 60. 5x for Power Integrations, Inc. — 47. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PEGA: 55. 6% to $56. 60.
08Which pays a better dividend — PEGA or POWI?
All stocks in this comparison pay dividends.
Power Integrations, Inc. (POWI) offers the highest yield at 1. 1%, versus 0. 2% for Pegasystems Inc. (PEGA).
09Is PEGA or POWI 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 (low volatility (β 1. 16), +186. 0% 10Y return). Power Integrations, Inc. (POWI) carries a higher beta of 2. 08 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PEGA: +186. 0%, POWI: +264. 8%), 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 POWI?
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; POWI is a small-cap quality compounder stock. POWI 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% · POWI: -1.9%)Net Margin>
%
(PEGA: 20.0% · POWI: 5.0%)P/E Ratio<
x
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