Pegasystems (NASDAQ:PEGA) & Celerity Solutions (OTCMKTS:CLTY) Critical Comparison

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

Volatility and Risk

Celerity Solutions has a beta of 4.22, indicating that its stock price is 322% more volatile than the S&P 500. Comparatively, Pegasystems has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

46.9% of Pegasystems shares are owned by institutional investors. 32.3% of Celerity Solutions shares are owned by insiders. Comparatively, 48.4% of Pegasystems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Celerity Solutions and Pegasystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celerity Solutions	0	0	0	0	0.00
Pegasystems	0	3	8	0	2.73

Pegasystems has a consensus price target of $63.30, indicating a potential upside of 96.94%. Given Pegasystems’ stronger consensus rating and higher possible upside, analysts clearly believe Pegasystems is more favorable than Celerity Solutions.

Profitability

This table compares Celerity Solutions and Pegasystems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celerity Solutions	N/A	N/A	N/A
Pegasystems	20.04%	30.05%	14.07%

Earnings & Valuation

This table compares Celerity Solutions and Pegasystems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celerity Solutions	N/A	N/A	N/A	N/A	N/A
Pegasystems	$1.70 billion	3.16	$393.44 million	$1.86	17.28

Pegasystems has higher revenue and earnings than Celerity Solutions.

Summary

Pegasystems beats Celerity Solutions on 9 of the 10 factors compared between the two stocks.

About Celerity Solutions

Celerity Solutions, Inc. provides enterprise applications solutions. The company offers its applications in various areas, such as finance, human capital management, manufacturing, mergers and acquisitions, sales operations efficiency, supply chain, utilities, and Web retail. Celerity Solutions, Inc. was incorporated in 1982 and is based in Redwood City, California.

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.