Comparing Pegasystems (NASDAQ:PEGA) & Elcom International (OTCMKTS:ELCO)

Pegasystems (NASDAQ:PEGA) and Elcom International (OTCMKTS:ELCO) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Earnings and Valuation

This table compares Pegasystems and Elcom International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pegasystems	$1.68 billion	5.99	$99.19 million	$1.16	50.57
Elcom International	N/A	N/A	N/A	N/A	N/A

Pegasystems has higher revenue and earnings than Elcom International.

Volatility & Risk

Pegasystems has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Elcom International has a beta of 0.14, indicating that its stock price is 86% less volatile than the S&P 500.

Institutional and Insider Ownership

46.9% of Pegasystems shares are held by institutional investors. 49.7% of Pegasystems shares are held by company insiders. Comparatively, 13.6% of Elcom International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Pegasystems and Elcom International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pegasystems	0	2	7	0	2.78
Elcom International	0	0	0	0	0.00

Pegasystems presently has a consensus price target of $61.83, suggesting a potential upside of 5.41%. Given Pegasystems’ stronger consensus rating and higher probable upside, analysts plainly believe Pegasystems is more favorable than Elcom International.

Profitability

This table compares Pegasystems and Elcom International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pegasystems	13.14%	42.42%	16.24%
Elcom International	N/A	N/A	N/A

Summary

Pegasystems beats Elcom International on 10 of the 10 factors compared between the two stocks.

About Pegasystems

Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; 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; and Pega Platform, an intelligent automation software for increasing efficiency of clients’ processes and workflows. It also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client’s business, such as customer types, lines of business, geographies, etc.; Pega Express Methodology and low code that connects enterprise data and systems to customer experience channels; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, 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.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.