Critical Contrast: Scienjoy (NASDAQ:SJ) & Pegasystems (NASDAQ:PEGA)

Pegasystems (NASDAQ:PEGA) and Scienjoy (NASDAQ:SJ) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Institutional & Insider Ownership

47.8% of Pegasystems shares are owned by institutional investors. Comparatively, 0.1% of Scienjoy shares are owned by institutional investors. 50.5% of Pegasystems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Pegasystems and Scienjoy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pegasystems $1.02 billion 7.99 -$61.37 million ($0.29) -343.21
Scienjoy $187.31 million 1.01 $26.99 million $0.93 6.61

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Pegasystems and Scienjoy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pegasystems 0 1 7 0 2.88
Scienjoy 0 0 0 0 N/A

Pegasystems currently has a consensus target price of $161.38, indicating a potential upside of 62.14%. Given Pegasystems’ higher possible upside, research analysts clearly believe Pegasystems is more favorable than Scienjoy.

Profitability

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

Net Margins Return on Equity Return on Assets
Pegasystems -1.82% -12.96% -4.13%
Scienjoy 11.72% 39.23% 25.42%

Volatility & Risk

Pegasystems has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Scienjoy has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Summary

Pegasystems beats Scienjoy on 7 of the 13 factors compared between the two stocks.

Pegasystems Company Profile

Pegasystems, Inc. engages in the development, market, license, and support of software, which allows organizations to build, deploy, and change enterprise applications. The company was founded by Alan Trefler in 1983 and is headquartered in Cambridge, MA.

Scienjoy Company Profile

Scienjoy Holding Corporation provides mobile live streaming platforms in the People's Republic of China. The company focuses on interactive show live streaming from broadcasters to users. Its platforms enable users to view and interact with broadcasters through online chat, virtual items, and playing games. As of December 31, 2020, the company had 904,568 paying users and 192,389 active broadcasters. It operates five platforms under the Showself Live Streaming, Lehai Live Streaming, Haixiu Live Streaming, BeeLive Live Streaming Chinese (MiFeng), and BeeLive International names. The company also offers technical development and advisory services. Scienjoy Holding Corporation was founded in 2011 and is based in Beijing, the People's Republic of China. Scienjoy Holding Corporation is a subsidiary of Lavacano Holdings Limited.

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