Analyzing Hut 8 Mining (NASDAQ:HUT) & Pegasystems (NASDAQ:PEGA)

Hut 8 Mining (NASDAQ:HUTGet Rating) and Pegasystems (NASDAQ:PEGAGet Rating) are both business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Hut 8 Mining and Pegasystems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hut 8 Mining -58.30% 2.24% 1.95%
Pegasystems -31.10% -29.68% -7.07%

Risk & Volatility

Hut 8 Mining has a beta of 4.64, meaning that its share price is 364% more volatile than the S&P 500. Comparatively, Pegasystems has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

12.4% of Hut 8 Mining shares are owned by institutional investors. Comparatively, 46.5% of Pegasystems shares are owned by institutional investors. 50.5% of Pegasystems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Hut 8 Mining and Pegasystems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hut 8 Mining $138.64 million 2.68 -$58.02 million ($0.56) -3.41
Pegasystems $1.21 billion 2.41 -$63.04 million ($4.65) -7.67

Hut 8 Mining has higher earnings, but lower revenue than Pegasystems. Pegasystems is trading at a lower price-to-earnings ratio than Hut 8 Mining, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hut 8 Mining and Pegasystems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hut 8 Mining 0 1 3 0 2.75
Pegasystems 0 8 1 0 2.11

Hut 8 Mining currently has a consensus price target of $7.67, indicating a potential upside of 301.40%. Pegasystems has a consensus price target of $66.00, indicating a potential upside of 85.08%. Given Hut 8 Mining’s stronger consensus rating and higher probable upside, analysts plainly believe Hut 8 Mining is more favorable than Pegasystems.

Summary

Hut 8 Mining beats Pegasystems on 10 of the 14 factors compared between the two stocks.

About Hut 8 Mining

(Get Rating)

Hut 8 Mining Corp. operates as a cryptocurrency mining company in North America. The company engages in industrial scale bitcoin mining operations. It also owns and operates 38 BlockBoxes in Drumheller, Alberta; and 51 BlockBoxes in Medicine Hat, Alberta. Hut 8 Mining Corp. was incorporated in 2011 and is headquartered in Toronto, Canada.

About Pegasystems

(Get Rating)

Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software applications in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. 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 also offers customer engagement applications, including Pega Customer Decision Hub 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. In addition, it provides intelligent automation software; Pega Cloud that allows clients to develop, test, and deploy applications and the Pega Platform using an Internet-based infrastructure; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and guidance, implementation, and technical support services. The company primarily markets its software and services to financial services, life sciences, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.

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