CommVault Systems (NASDAQ:CVLT) & Pegasystems (NASDAQ:PEGA) Head-To-Head Comparison

CommVault Systems (NASDAQ:CVLT) and Pegasystems (NASDAQ:PEGA) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CommVault Systems	$995.62 million	3.86	$76.11 million	$1.94	45.00
Pegasystems	$1.75 billion	3.93	$99.19 million	$1.49	27.24

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

Risk and Volatility

CommVault Systems has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Pegasystems has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for CommVault Systems and Pegasystems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CommVault Systems	0	3	9	2	2.93
Pegasystems	0	2	10	0	2.83

CommVault Systems presently has a consensus target price of $143.58, suggesting a potential upside of 64.47%. Pegasystems has a consensus target price of $66.95, suggesting a potential upside of 64.95%. Given Pegasystems’ higher possible upside, analysts clearly believe Pegasystems is more favorable than CommVault Systems.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CommVault Systems	7.58%	37.38%	6.68%
Pegasystems	22.54%	38.86%	18.27%

Institutional and Insider Ownership

93.5% of CommVault Systems shares are held by institutional investors. Comparatively, 46.9% of Pegasystems shares are held by institutional investors. 1.0% of CommVault Systems shares are held by insiders. Comparatively, 49.7% of Pegasystems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Pegasystems beats CommVault Systems on 10 of the 15 factors compared between the two stocks.

About CommVault Systems

Commvault Systems, Inc. provides data protection platform that helps customers to secure, defend, and recover their data in the United States and internationally. The company offers Commvault Backup and Recovery, a backup and recovery solution; Commvault Disaster Recovery, a replication and disaster recovery solution; Commvault Complete Data Protection, a data protection solution; and Metallic Data Protection as-a-service, which delivers enterprise-grade data protection as a service on a cloud platform, with advanced built-in security controls. It also provides Commvault HyperScale X, an easy-to-deploy scale-out solution; and Metallic Recovery Reserve, an easy button to adopt secure and scalable cloud storage in minutes. In addition, the company provides technology consulting, Ransomware recovery, education, and remote managed services. Further, it sells appliances that integrate the software with hardware for use in a range of business needs and use cases; and offers customer support, consulting, assessment and design, and installation services, as well as customer education and as-a-service under the Metallic brand. The company sells its products and services directly through its sales force, and indirectly through its network of distributors, value-added resellers, systems integrators, corporate resellers, and original equipment manufacturers to large enterprises, small or med-sized businesses, and government agencies. It supports customers in a range of industries, including banking, insurance and financial services, government, healthcare, pharmaceuticals and medical services, technology, legal, manufacturing, utilities, and energy. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey.

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.