Head to Head Contrast: LM Funding America (NASDAQ:PWCM) & Pegasystems (NASDAQ:PEGA)

Pegasystems (NASDAQ:PEGA) and LM Funding America (NASDAQ:PWCM) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Valuation & Earnings

This table compares Pegasystems and LM Funding America”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pegasystems	$1.75 billion	3.18	$393.44 million	$1.61	21.07
LM Funding America	$8.85 million	0.13	-$26.92 million	($60.51)	-0.01

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

Profitability

This table compares Pegasystems and LM Funding America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pegasystems	16.86%	35.22%	15.55%
LM Funding America	-413.92%	-132.69%	-78.02%

Institutional and Insider Ownership

46.9% of Pegasystems shares are owned by institutional investors. Comparatively, 22.7% of LM Funding America shares are owned by institutional investors. 48.4% of Pegasystems shares are owned by insiders. Comparatively, 15.0% of LM Funding America shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Pegasystems and LM Funding America, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pegasystems	2	7	6	0	2.27
LM Funding America	1	0	0	0	1.00

Pegasystems currently has a consensus price target of $45.73, suggesting a potential upside of 34.77%. Given Pegasystems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Pegasystems is more favorable than LM Funding America.

Volatility and Risk

Pegasystems has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, LM Funding America has a beta of 2.33, suggesting that its stock price is 133% more volatile than the S&P 500.

Summary

Pegasystems beats LM Funding America on 13 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 LM Funding America

LM Funding America, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments, Specialty Finance and Mining Operations. The company also engages in Bitcoin mining operations; and provides funding to nonprofit community associations. The company was founded in 2008 and is based in Tampa, Florida.