Financial Analysis: Global Interactive Technologies (NASDAQ:GITS) versus Pegasystems (NASDAQ:PEGA)

Pegasystems (NASDAQ:PEGA) and Global Interactive Technologies (NASDAQ:GITS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Pegasystems and Global Interactive Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pegasystems	0	2	9	0	2.82
Global Interactive Technologies	1	0	0	0	1.00

Pegasystems presently has a consensus price target of $70.05, suggesting a potential upside of 24.96%. Given Pegasystems’ stronger consensus rating and higher possible upside, research analysts plainly believe Pegasystems is more favorable than Global Interactive Technologies.

Valuation & Earnings

This table compares Pegasystems and Global Interactive Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pegasystems	$1.50 billion	6.35	$99.19 million	$1.49	37.62
Global Interactive Technologies	$790,000.00	3.44	-$6.17 million	($0.59)	-1.26

Pegasystems has higher revenue and earnings than Global Interactive Technologies. Global Interactive Technologies is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pegasystems and Global Interactive Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pegasystems	16.05%	43.49%	18.42%
Global Interactive Technologies	N/A	-104.68%	-93.94%

Insider and Institutional Ownership

46.9% of Pegasystems shares are held by institutional investors. Comparatively, 0.2% of Global Interactive Technologies shares are held by institutional investors. 50.1% of Pegasystems shares are held by insiders. Comparatively, 9.3% of Global Interactive Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Pegasystems has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Global Interactive Technologies has a beta of -0.57, indicating that its share price is 157% less volatile than the S&P 500.

Summary

Pegasystems beats Global Interactive Technologies on 14 of the 14 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 Global Interactive Technologies

Global Interactive Technologies, Inc. engages in the provision of a global multi-media platform for users to interact with other like-minded users to share appreciation of various types of entertainment and cultures such as K-POP and modern Korean culture. It operates through the FANTOO platform. The company was founded on October 20, 2021 and is headquartered in Seoul, South Korea.