Pegasystems (PEGA) versus Acxiom (ACXM) Critical Review
Pegasystems (NASDAQ:PEGA) and Acxiom (NASDAQ:ACXM) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Risk & Volatility
Pegasystems has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Acxiom has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Pegasystems and Acxiom, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pegasystems presently has a consensus price target of $71.25, suggesting a potential upside of 27.39%. Acxiom has a consensus price target of $47.25, suggesting a potential downside of 2.54%. Given Pegasystems’ higher probable upside, analysts plainly believe Pegasystems is more favorable than Acxiom.
Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Acxiom does not pay a dividend. Pegasystems pays out 54.5% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Pegasystems and Acxiom’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pegasystems||$840.58 million||5.23||$32.93 million||$0.22||254.23|
|Acxiom||$917.41 million||4.09||$23.48 million||$0.44||110.18|
Pegasystems has higher earnings, but lower revenue than Acxiom. Acxiom is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
45.4% of Pegasystems shares are owned by institutional investors. Comparatively, 94.5% of Acxiom shares are owned by institutional investors. 52.9% of Pegasystems shares are owned by company insiders. Comparatively, 3.5% of Acxiom shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Pegasystems and Acxiom’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Acxiom beats Pegasystems on 9 of the 15 factors compared between the two stocks.
Pegasystems Company Profile
Pegasystems Inc. develops, markets, licenses, and supports software applications for marketing, sales automation, customer service, and operations in the United States and internationally. It provides Pega Platform, an application development product for clients to build and extend their own applications. The company offers customer engagement applications, including Pega Marketing that enable enterprises to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega sales automation to automate and manage the sales process from prospecting to product fulfillment; and Pega customer service to anticipate customer needs, connect customers, the right people and systems, and automate or intelligently guide customer interactions to evolve the customer service experience and to allow enterprises to deliver interactions across channels and enhance employee productivity. It also provides digital process automation products, such as industry-specific software applications that include real-time, omni-channel AI; end-to-end robotic automation; journey-centric rapid delivery; software that writes your software; and unified future-proof platform for businesses with robust capabilities to automate industry-specific business processes. In addition, the company offers Pega Cloud that provides production, development, and testing services to accelerate the development and deployment of Pega applications and the Pega Platform, as well as guidance and implementation, technical support, and instructor-led and online training services. It primarily markets its software and services to financial services, healthcare, manufacturing and high tech, communications and media, insurance, government, consumer services, life sciences, and other markets through a direct sales force, as well as through partnerships with technology providers and application developers. Pegasystems Inc. was founded in 1983 and is headquartered in Cambridge, Massachusetts.
Acxiom Company Profile
Acxiom Corporation operates a technology and enablement services company in the United States, Europe, the Asia-Pacific, and internationally. The company operates through three segments: Connectivity, Audience Solutions, and Marketing Services. The Connectivity segment provides a foundational identity resolution layer, which enables its clients to identify and reach consumers across channels and measure the impact of marketing on sales. This segment offers LiveRamp IdentityLink, an identity resolution service that ties data back to real people and makes it possible to onboard that data for people-based marketing initiatives across digital channels. Its IdentityLink serves brands and agencies, marketing technology providers, data owners, and publishers. The Audience Solutions segment offers consumer demographics products, including InfoBase products to marketers with the ability to identify and reach the right audience with the right message across traditional and digital channels; and AbiliTec, which enables brands recognize individuals and households using various types of input variables and connect identities online and offline. The Marketing Services segment offers marketing database services, and strategy and analytics. The company serves companies and organizations in the financial services, insurance, information services, direct marketing, retail, consumer packaged goods, technology, automotive, healthcare, travel, and communications industries, as well as in the non-profit and government sectors. Acxiom Corporation was founded in 1969 and is headquartered in Conway, Arkansas.
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