Comparing Keel Infrastructure (NASDAQ:KEEL) & Pegasystems (NASDAQ:PEGA)

Pegasystems (NASDAQ:PEGA) and Keel Infrastructure (NASDAQ:KEEL) are both mid-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Volatility and Risk

Pegasystems has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Keel Infrastructure has a beta of 4.06, meaning that its share price is 306% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Pegasystems and Keel Infrastructure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pegasystems	1	6	6	0	2.38
Keel Infrastructure	1	0	7	0	2.75

Pegasystems currently has a consensus price target of $50.10, suggesting a potential upside of 40.26%. Keel Infrastructure has a consensus price target of $6.25, suggesting a potential upside of 81.69%. Given Keel Infrastructure’s stronger consensus rating and higher possible upside, analysts clearly believe Keel Infrastructure is more favorable than Pegasystems.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pegasystems	$1.75 billion	3.36	$393.44 million	$1.77	20.18
Keel Infrastructure	$229.28 million	9.27	-$284.54 million	($0.30)	-11.47

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

Institutional & Insider Ownership

46.9% of Pegasystems shares are held by institutional investors. Comparatively, 20.6% of Keel Infrastructure shares are held by institutional investors. 48.4% of Pegasystems shares are held by company insiders. Comparatively, 9.5% of Keel Infrastructure shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Pegasystems and Keel Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pegasystems	18.66%	32.21%	14.57%
Keel Infrastructure	-230.59%	-66.18%	-27.74%

Summary

Pegasystems beats Keel Infrastructure on 9 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 Keel Infrastructure

Bitfarms Ltd. is a bitcoin mining company. It provides vertically integrated mining operations with onsite technical repair, proprietary data analytics and Company-owned electrical engineering and installation services to deliver operational performance and uptime. Bitfarms Ltd. is based in TORONTO, Ontario.