Head to Head Comparison: Fang (NYSE:SFUN) vs. Pegasystems (NYSE:PEGA)

Fang (NYSE:SFUN) and Pegasystems (NASDAQ:PEGA) are both business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Earnings & Valuation

This table compares Fang and Pegasystems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fang $303.02 million 0.45 -$114.91 million N/A N/A
Pegasystems $911.38 million 6.21 -$90.43 million ($1.25) -56.86

Pegasystems has higher revenue and earnings than Fang.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Fang and Pegasystems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fang 0 0 0 0 N/A
Pegasystems 0 0 7 0 3.00

Pegasystems has a consensus target price of $96.71, suggesting a potential upside of 36.06%. Given Pegasystems’ higher probable upside, analysts plainly believe Pegasystems is more favorable than Fang.

Volatility and Risk

Fang has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Pegasystems has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Insider and Institutional Ownership

35.3% of Fang shares are owned by institutional investors. Comparatively, 47.3% of Pegasystems shares are owned by institutional investors. 52.4% of Pegasystems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Fang and Pegasystems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fang -11.09% -3.90% -1.33%
Pegasystems -9.92% -17.78% -10.36%

Summary

Pegasystems beats Fang on 8 of the 12 factors compared between the two stocks.

About Fang

Fang Holdings Limited operates a real estate Internet portal in the People's Republic of China. The company's portal offers listing, marketing, e-commerce, financial, and other value-added services. It supports active online communities and networks of users seeking information on, and services for, the real estate and home-related sectors. The company was formerly known as SouFun Holdings Limited and changed its name to Fang Holdings Limited in September 2016. Fang Holdings Limited was founded in 1999 and is headquartered in Beijing, China.

About Pegasystems

Pegasystems Inc. develops, markets, licenses, and supports enterprise software applications in the United States, India, and internationally. It provides Pega Platform, an application development product for clients; and Pega Infinity, a software platform that unifies customer engagement and digital process automation. The company offers customer engagement applications, including Pega Marketing that enable enterprises to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Sales Automation to automate and manage the sales process; and Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity. It also provides digital process automation products for businesses with capabilities to automate industry-specific business processes. In addition, the company offers Pega Cloud that allows clients to develop, test, and deploy applications and the Pega Platform using an Internet-based infrastructure; and guidance and implementation, technical support, and instructor-led and online training services. It primarily markets its software and services to financial services, healthcare, manufacturing and high tech, communications and media, insurance, government, consumer services, and life sciences markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was founded in 1983 and is headquartered in Cambridge, Massachusetts.

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