Contrasting Pegasystems (PEGA) and Mitel Networks Corporation (MITL)
Mitel Networks Corporation (NASDAQ: MITL) and Pegasystems (NASDAQ:PEGA) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Mitel Networks Corporation does not pay a dividend. Pegasystems pays out 19.7% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Mitel Networks Corporation and Pegasystems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mitel Networks Corporation||$956.00 million||1.08||$103.40 million||($1.63)||-5.37|
|Pegasystems||$803.64 million||5.81||$75.15 million||$0.61||98.52|
Mitel Networks Corporation has higher revenue and earnings than Pegasystems. Mitel Networks Corporation is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
79.2% of Mitel Networks Corporation shares are owned by institutional investors. Comparatively, 44.5% of Pegasystems shares are owned by institutional investors. 16.5% of Mitel Networks Corporation shares are owned by insiders. Comparatively, 53.6% of Pegasystems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Mitel Networks Corporation has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500. Comparatively, Pegasystems has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Mitel Networks Corporation and Pegasystems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mitel Networks Corporation||0||1||1||0||2.50|
Mitel Networks Corporation presently has a consensus price target of $9.25, indicating a potential upside of 5.59%. Pegasystems has a consensus price target of $61.75, indicating a potential upside of 2.75%. Given Mitel Networks Corporation’s higher possible upside, research analysts clearly believe Mitel Networks Corporation is more favorable than Pegasystems.
This table compares Mitel Networks Corporation and Pegasystems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mitel Networks Corporation||-20.50%||4.69%||1.39%|
Pegasystems beats Mitel Networks Corporation on 10 of the 16 factors compared between the two stocks.
About Mitel Networks Corporation
Mitel Networks Corporation is a provider of business communications and collaboration software, services and solutions. The Company’s segments include Cloud and Enterprise. The Enterprise segment sells and supports products and services for premise-based customers. The Cloud segment sells and supports products that are deployed in a cloud environment. The Company’s product portfolio includes premises and cloud-based enterprise communications infrastructure products and solutions, unified communications and collaboration (UCC) and contact center applications and a range of service offerings. The Company’s Cloud Division offers a range of private, public, hybrid and mobile Software as a Service (SaaS) solutions for businesses of all sizes. This includes Unified Communications as a Service (UCaaS) solutions. Its Enterprise Division portfolio integrates voice, UCC applications, and contact center applications on fixed and mobile networks across a range of end user devices.
Pegasystems Inc. develops, markets, licenses and supports software applications for marketing, sales and onboarding, and customer service needs. The Company also offers software applications built on the Pega platform. Its software is designed to assist clients in building, deploying and evolving enterprise applications. Its applications and platform intersect with and encompass several traditional software markets, including Customer Relationship Management (CRM); Business Process Management (BPM); Business Rules Management Systems (BRMS); Dynamic Case Management (DCM); Decision Management, which includes Predictive and Adaptive analytics, and the Vertical Specific Software (VSS) market of industry solutions and packaged applications. It provides implementation, consulting, training, technical support and hosting services to facilitate the use of its software. The Company offers its services to financial, healthcare, insurance, manufacturing, life sciences and other markets.
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