Head-To-Head Review: Pegasystems (NASDAQ:PEGA) vs. Onfolio (NASDAQ:ONFO)

Onfolio (NASDAQ:ONFO) and Pegasystems (NASDAQ:PEGA) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Onfolio	-41.50%	-55.89%	-33.86%
Pegasystems	8.29%	37.83%	10.18%

Analyst Recommendations

This is a summary of current ratings and target prices for Onfolio and Pegasystems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onfolio	0	0	0	0	0.00
Pegasystems	0	3	8	1	2.83

Pegasystems has a consensus target price of $95.82, suggesting a potential downside of 11.75%. Given Pegasystems’ stronger consensus rating and higher possible upside, analysts clearly believe Pegasystems is more favorable than Onfolio.

Institutional & Insider Ownership

0.8% of Onfolio shares are held by institutional investors. Comparatively, 46.9% of Pegasystems shares are held by institutional investors. 39.0% of Onfolio shares are held by insiders. Comparatively, 50.1% of Pegasystems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onfolio	$5.24 million	1.24	-$8.15 million	($0.60)	-2.12
Pegasystems	$1.43 billion	6.50	$67.81 million	$1.37	79.26

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

Summary

Pegasystems beats Onfolio on 14 of the 14 factors compared between the two stocks.

About Onfolio

Onfolio Holdings, Inc. acquires and develops internet businesses. It provides website management, digital, advertising, and content placement services on its websites; and product sales on various sites. The company was founded in 2019 and is based in Wilmington, Delaware.

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.