In the fast-evolving software industry, Autodesk, Inc. (ADSK) and Pegasystems Inc. (PEGA) stand out as innovators driving digital transformation across diverse sectors. Autodesk excels in 3D design and engineering software, while Pegasystems focuses on customer engagement and intelligent automation platforms. Both companies compete in the broader application software market, offering growth potential through innovation. This article will help you decide which company is the more compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Autodesk, Inc. and Pegasystems Inc. by providing an overview of these two companies and their main differences.
Autodesk Overview
Autodesk, Inc. focuses on providing 3D design, engineering, and entertainment software and services worldwide. Its offerings include AutoCAD, BIM 360, Fusion 360, and several other tools serving professionals in architecture, engineering, construction, manufacturing, and media industries. Founded in 1982 and headquartered in San Rafael, California, Autodesk operates with about 15,300 employees and is listed on NASDAQ with a market cap of approximately 56.6B USD.
Pegasystems Overview
Pegasystems Inc. develops enterprise software applications aimed at customer engagement and digital process automation across diverse sectors including financial services, healthcare, and government. Its flagship products include Pega Platform and Pega Infinity, alongside intelligent automation and cloud services. Established in 1983 and based in Waltham, Massachusetts, Pegasystems employs around 5,443 people and trades on NASDAQ with a market cap near 8.9B USD.
Key similarities and differences
Both companies operate in the software application industry and serve global markets with technology-driven solutions. Autodesk specializes in design and engineering software predominantly for creative and manufacturing professionals, while Pegasystems focuses on enterprise software for customer relationship management and automation. Autodesk’s business model emphasizes product sales and licensing for technical industries, whereas Pegasystems targets enterprise clients with cloud-based platforms and customer engagement tools.
Income Statement Comparison
The table below compares key income statement metrics for Autodesk, Inc. and Pegasystems Inc. for their most recent fiscal years, highlighting revenue, profitability, and earnings per share.
| Metric | Autodesk, Inc. (ADSK) | Pegasystems Inc. (PEGA) |
|---|---|---|
| Market Cap | 56.6B | 8.9B |
| Revenue | 6.13B (2025) | 1.50B (2024) |
| EBITDA | 1.55B (2025) | 185M (2024) |
| EBIT | 1.37B (2025) | 149M (2024) |
| Net Income | 1.11B (2025) | 99M (2024) |
| EPS | 5.17 (2025) | 0.58 (2024) |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Autodesk, Inc.
Autodesk’s revenue grew consistently from 3.79B in 2021 to 6.13B in 2025, reflecting a 61.74% increase over the period. Net income showed a more volatile trend, peaking at 1.21B in 2021 but declining to 1.11B in 2025. Margins remain strong, with a gross margin of 90.57% and net margin at 18.14% in 2025. The latest year saw revenue growth slow to 12.7%, but profitability and EPS improved notably.
Pegasystems Inc.
Pegasystems’ revenue expanded from 1.02B in 2020 to 1.50B in 2024, a 47.14% increase overall. Net income rebounded sharply from negative 61M in 2020 to 99M in 2024, reflecting strong operational recovery. The gross margin stood at 73.91% in 2024, with a net margin of 6.63%. Recent performance showed moderate revenue growth of 4.51%, alongside significant improvements in EBIT and net margin, indicating better cost control.
Which one has the stronger fundamentals?
Autodesk exhibits higher margins, stronger absolute revenue, and more favorable margin trends, with well-managed operating expenses and no interest expense. Pegasystems shows impressive net income recovery and substantial EPS growth but operates with lower margins and smaller scale. Both companies reflect favorable income statement evaluations, though Autodesk’s higher profitability ratios suggest stronger fundamental financial health.
Financial Ratios Comparison
Below is a comparison of key financial ratios for Autodesk, Inc. (ADSK) and Pegasystems Inc. (PEGA) based on their most recent fiscal year data.
| Ratios | Autodesk, Inc. (2025) | Pegasystems Inc. (2024) |
|---|---|---|
| ROE | 42.4% | 16.9% |
| ROIC | 18.0% | 7.4% |
| P/E | 60.2 | 80.1 |
| P/B | 25.5 | 13.6 |
| Current Ratio | 0.68 | 1.23 |
| Quick Ratio | 0.68 | 1.23 |
| D/E (Debt-to-Equity) | 0.98 | 0.94 |
| Debt-to-Assets | 23.6% | 31.1% |
| Interest Coverage | 0 | 18.1 |
| Asset Turnover | 0.57 | 0.85 |
| Fixed Asset Turnover | 21.4 | 14.4 |
| Payout Ratio | 0 | 10.3% |
| Dividend Yield | 0 | 0.13% |
Interpretation of the Ratios
Autodesk, Inc.
Autodesk shows strong profitability with a favorable net margin of 18.14% and a high return on equity at 42.43%, indicating efficient capital use. However, liquidity ratios are weak, with a current ratio of 0.68, raising short-term solvency concerns. The company does not pay dividends, reflecting a focus on reinvestment and growth rather than shareholder payouts.
Pegasystems Inc.
Pegasystems presents moderate profitability with a net margin of 6.63% and a favorable ROE of 16.94%, showing decent capital efficiency. Liquidity is neutral to favorable, with a current ratio of 1.23 and a quick ratio also at 1.23. The company pays a small dividend with a yield of 0.13%, suggesting modest shareholder returns alongside ongoing investment in operations.
Which one has the best ratios?
Autodesk demonstrates stronger profitability and capital returns but suffers from weak liquidity and high valuation multiples. Pegasystems has more balanced liquidity ratios and a slight dividend yield but lower profitability and mixed efficiency metrics. Overall, Autodesk’s ratios are neutral due to offsetting strengths and weaknesses, while Pegasystems’ ratios are slightly favorable with moderate risk factors.
Strategic Positioning
This section compares the strategic positioning of Autodesk and Pegasystems, including market position, key segments, and exposure to technological disruption:
Autodesk, Inc.
- Strong market position in software applications with high competitive pressure in design tools.
- Key segments include architecture, engineering, construction, manufacturing, and media entertainment.
- Exposure to technological disruption via cloud-based construction management and 3D CAD software innovation.
Pegasystems Inc.
- Smaller market cap, competes in enterprise software with moderate competitive pressure.
- Focused on customer engagement, digital process automation, and cloud-based enterprise applications.
- Faces disruption risks through cloud platforms and AI-driven automation in customer interaction software.
Autodesk vs Pegasystems Positioning
Autodesk pursues a diversified approach across multiple industries like construction and manufacturing, offering broad software solutions. Pegasystems concentrates on enterprise automation and customer engagement software, specializing in cloud services. Autodesk’s diversity supports resilience, while Pegasystems’ focus targets specific market needs.
Which has the best competitive advantage?
Autodesk demonstrates a very favorable moat with ROIC exceeding WACC by 7.6% and a growing profitability trend, indicating a durable competitive advantage. Pegasystems shows a slightly unfavorable moat, shedding value despite improving ROIC, reflecting weaker competitive positioning.
Stock Comparison
The stock price movements over the past 12 months reveal distinct bullish trends for both Autodesk, Inc. and Pegasystems Inc., with notable deceleration and recent declines in market momentum.
Trend Analysis
Autodesk, Inc. (ADSK) showed a 3.3% price increase over the past year, indicating a bullish but decelerating trend, with a high volatility level (std. dev. 29.87) and a recent downward trend of -11.83%.
Pegasystems Inc. (PEGA) posted a strong 63.18% gain over the same period, also bullish with deceleration. Volatility was lower (std. dev. 10.77), but recent performance declined by -18.32%.
Comparing the two, Pegasystems delivered the highest market performance with a significantly larger annual price increase despite both showing recent downward corrections.
Target Prices
The current analyst consensus shows a positive outlook with notable upside potential for both Autodesk, Inc. and Pegasystems Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Autodesk, Inc. | 400 | 343 | 373 |
| Pegasystems Inc. | 80 | 67 | 74 |
Analysts expect Autodesk’s stock to rise significantly from its current price of $265.69, while Pegasystems shows potential upside from $51.99, indicating overall optimistic sentiment.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Autodesk, Inc. and Pegasystems Inc.:
Rating Comparison
ADSK Rating
- Rating: B- indicating a very favorable rating.
- Discounted Cash Flow Score: 3, moderate status.
- ROE Score: 5, very favorable for profitability.
- ROA Score: 4, favorable asset utilization.
- Debt To Equity Score: 1, very unfavorable risk.
- Overall Score: 3, moderate overall rating.
PEGA Rating
- Rating: B+ indicating a very favorable rating.
- Discounted Cash Flow Score: 3, moderate status.
- ROE Score: 5, very favorable for profitability.
- ROA Score: 5, very favorable asset utilization.
- Debt To Equity Score: 3, moderate financial risk.
- Overall Score: 3, moderate overall rating.
Which one is the best rated?
Pegasystems holds a higher rating (B+) compared to Autodesk’s B-, with stronger scores in ROA and a better debt to equity score, suggesting a comparatively more favorable financial profile.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for both companies:
Autodesk, Inc. Scores
- Altman Z-Score: 5.05, indicating a safe zone status.
- Piotroski Score: 8, representing very strong financial health.
Pegasystems Inc. Scores
- Altman Z-Score: 10.31, indicating a safe zone status.
- Piotroski Score: 8, representing very strong financial health.
Which company has the best scores?
Both Autodesk and Pegasystems have Altman Z-Scores in the safe zone and identical Piotroski Scores of 8. Pegasystems has a notably higher Altman Z-Score, suggesting stronger financial stability based on this metric.
Grades Comparison
The following tables present the recent grades from reputable grading companies for Autodesk, Inc. and Pegasystems Inc.:
Autodesk, Inc. Grades
This table shows the latest grade updates from major financial institutions for Autodesk, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Overweight | 2025-11-26 |
| Wells Fargo | Maintain | Overweight | 2025-11-26 |
| Deutsche Bank | Upgrade | Buy | 2025-11-26 |
| B of A Securities | Maintain | Neutral | 2025-11-26 |
| Rosenblatt | Maintain | Buy | 2025-11-26 |
| Macquarie | Maintain | Outperform | 2025-11-26 |
| BMO Capital | Maintain | Market Perform | 2025-11-26 |
| Baird | Maintain | Outperform | 2025-11-26 |
| Rosenblatt | Maintain | Buy | 2025-11-24 |
| Baird | Maintain | Outperform | 2025-11-18 |
Autodesk’s grades mostly range from Neutral to Outperform, with several upgrades and consistent Buy and Outperform recommendations.
Pegasystems Inc. Grades
This table presents the latest grade information from recognized financial institutions for Pegasystems Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Overweight | 2025-12-05 |
| Wedbush | Maintain | Outperform | 2025-10-23 |
| RBC Capital | Maintain | Outperform | 2025-10-23 |
| Barclays | Maintain | Equal Weight | 2025-10-23 |
| Rosenblatt | Maintain | Buy | 2025-10-23 |
| DA Davidson | Upgrade | Buy | 2025-10-22 |
| Rosenblatt | Maintain | Buy | 2025-10-15 |
| Rosenblatt | Maintain | Buy | 2025-07-24 |
| DA Davidson | Maintain | Neutral | 2025-07-24 |
| Wedbush | Maintain | Outperform | 2025-07-24 |
Pegasystems’ ratings mostly vary between Neutral and Outperform, with several Buy and Outperform grades maintained and one upgrade to Buy.
Which company has the best grades?
Both Autodesk and Pegasystems share a consensus Buy rating, but Autodesk has a higher frequency of Outperform and Buy grades from multiple firms, indicating slightly stronger analyst conviction. This trend may influence investor sentiment and portfolio positioning.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for Autodesk, Inc. (ADSK) and Pegasystems Inc. (PEGA) based on recent financial and operational data.
| Criterion | Autodesk, Inc. (ADSK) | Pegasystems Inc. (PEGA) |
|---|---|---|
| Diversification | Highly diversified across Architecture, Manufacturing, Media segments; $2.94B in Architecture alone (2025) | Less diversified, mainly focused on Pega Cloud ($1.13B) and Subscription services |
| Profitability | Strong profitability with 18.14% net margin, 42.43% ROE, and 18.01% ROIC (2025) | Moderate profitability: 6.63% net margin, 16.94% ROE, 7.4% ROIC (2024) |
| Innovation | Very favorable moat with growing ROIC (+15.4%), indicating durable competitive advantage | Slightly unfavorable moat; value destruction but improving ROIC trend (+224%) |
| Global presence | Extensive global footprint in multiple industries and software segments | Primarily cloud-based software with strong subscription growth, but less broad industrial reach |
| Market Share | Leading position in CAD and design software markets, strong recurring revenue streams | Growing market share in cloud BPM and CRM software, but faces intense competition |
Key takeaways: Autodesk demonstrates robust diversification, superior profitability, and a durable moat, making it a strong value creator. Pegasystems shows improving profitability and innovation but still struggles with value creation and has a narrower business focus, warranting cautious consideration.
Risk Analysis
Below is a comparison of key risks for Autodesk, Inc. (ADSK) and Pegasystems Inc. (PEGA) based on the most recent data from 2025 and 2024 respectively:
| Metric | Autodesk, Inc. (ADSK) | Pegasystems Inc. (PEGA) |
|---|---|---|
| Market Risk | Beta 1.47 — moderately high volatility exposure | Beta 1.08 — moderate volatility |
| Debt level | Debt-to-Equity ~0.98 (neutral), Debt-to-Assets 23.6% (favorable) | Debt-to-Equity ~0.94 (neutral), Debt-to-Assets 31.1% (neutral) |
| Regulatory Risk | Moderate — operates globally, subject to software and data regulations | Moderate — global enterprise software exposure |
| Operational Risk | High — reliance on innovation and software development cycles | Moderate — dependency on cloud infrastructure and customer deployment |
| Environmental Risk | Low — primarily software business, limited direct environmental impact | Low — primarily software business, limited direct environmental impact |
| Geopolitical Risk | Moderate — US-based with international sales, exposure to trade tensions | Moderate — US-based with diverse international markets |
Autodesk shows a higher market risk due to its beta and slightly higher operational risks tied to its broad product portfolio. Pegasystems has moderately lower market risk but a higher debt-to-assets ratio, which could affect financial flexibility. Both face typical regulatory and geopolitical risks for tech companies with global operations.
Which Stock to Choose?
Autodesk, Inc. (ADSK) shows favorable income growth with a 12.7% revenue increase in 2025 and strong profitability metrics, including an 18.14% net margin and 42.43% ROE. Its debt level is moderate with a net debt to EBITDA of 0.62, but liquidity ratios are weak. The overall rating is very favorable (B-), supported by a very favorable moat and strong scores indicating financial stability.
Pegasystems Inc. (PEGA) exhibits moderate income growth with a 4.5% revenue increase in 2024 and a lower 6.63% net margin. Its ROE is favorable at 16.94%, but debt is higher with net debt to EBITDA at 1.15. Liquidity ratios are neutral to favorable. The overall rating is very favorable (B+), though its moat is slightly unfavorable, reflecting value destruction despite improving profitability and strong financial scores.
For investors seeking durable competitive advantage and strong profitability, Autodesk’s very favorable moat and robust income growth might appear more appealing. Conversely, investors with a moderate risk tolerance or seeking potential turnaround opportunities could find Pegasystems’ improving profitability and favorable rating suggestive of future value. The choice may depend on the investor’s risk profile and preference for stability versus growth potential.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Autodesk, Inc. and Pegasystems Inc. to enhance your investment decisions:
