Pegasystems (NASDAQ:PEGA – Get Free Report) and SMC Entertainment (OTCMKTS:SMCE – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Valuation & Earnings
This table compares Pegasystems and SMC Entertainment”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pegasystems | $1.43 billion | 5.18 | $67.81 million | $1.37 | 63.18 |
| SMC Entertainment | N/A | N/A | -$1.56 million | ($0.01) | -0.14 |
Pegasystems has higher revenue and earnings than SMC Entertainment. SMC Entertainment is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pegasystems | 0 | 3 | 8 | 0 | 2.73 |
| SMC Entertainment | 0 | 0 | 0 | 0 | 0.00 |
Pegasystems currently has a consensus price target of $85.90, indicating a potential downside of 0.75%. Given Pegasystems’ stronger consensus rating and higher possible upside, research analysts plainly believe Pegasystems is more favorable than SMC Entertainment.
Volatility & Risk
Pegasystems has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, SMC Entertainment has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Institutional & Insider Ownership
46.9% of Pegasystems shares are owned by institutional investors. 50.1% of Pegasystems shares are owned by insiders. Comparatively, 41.2% of SMC Entertainment shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Pegasystems and SMC Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pegasystems | 8.29% | 37.83% | 10.18% |
| SMC Entertainment | N/A | -8.75% | -235.79% |
Summary
Pegasystems beats SMC Entertainment on 12 of the 12 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 SMC Entertainment
SMC Entertainment, Inc. focuses on the acquisition and support of financial technology companies in the United States. The company develops and provides technology that combines artificial intelligence (AI) /machine learning (ML) driven Quantitative investing (IQ Engine) with AI-enabled wealth management tools; and offers IQ Engine, an AI driven contextual analyzer that creates a repository of various equity research. It markets a software-as-a-service (SaaS) proprietary platform for certified public accountants, financial institutions, and registered investment advisors. The company was formerly known as SMC Recordings, Inc. and changed its name to SMC Entertainment, Inc. in May 2011. SMC Entertainment, Inc. was incorporated in 1998 and is based in Boca Raton, Florida.
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