In today’s fast-evolving technology landscape, choosing the right software company to invest in can be challenging yet rewarding. Bentley Systems, Incorporated (BSY) and Pegasystems Inc. (PEGA) both operate in the application software industry, serving global markets with innovative platforms for infrastructure engineering and enterprise automation, respectively. Their overlapping focus on digital transformation and process optimization makes this comparison timely. Join me as we evaluate which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Bentley Systems and Pegasystems by providing an overview of these two companies and their main differences.
Bentley Systems Overview
Bentley Systems, Incorporated develops infrastructure engineering software solutions across multiple regions, including the Americas, Europe, and Asia-Pacific. Its product suite supports open modeling, simulation, project delivery, and asset performance for civil, structural, and geotechnical professionals. Founded in 1984 and headquartered in Exton, Pennsylvania, Bentley serves a specialized market with a focus on infrastructure design and management.
Pegasystems Overview
Pegasystems Inc. offers enterprise software applications primarily focused on customer engagement and digital process automation. Its platforms, such as Pega Platform and Pega Infinity, support sales automation, customer service, and intelligent automation across various industries including financial services and healthcare. Established in 1983 and based in Waltham, Massachusetts, Pegasystems markets its solutions globally through direct sales and partnerships.
Key similarities and differences
Both companies operate in the technology sector and develop application software, serving diverse global markets. Bentley targets infrastructure engineering professionals with specialized modeling and simulation tools, while Pegasystems focuses on enterprise customer engagement and process automation. Bentley’s offerings emphasize infrastructure and asset management, whereas Pegasystems centers on enhancing customer experiences and operational workflows.
Income Statement Comparison
This table compares key income statement metrics for Bentley Systems, Incorporated and Pegasystems Inc. for the fiscal year 2024.
| Metric | Bentley Systems, Incorporated | Pegasystems Inc. |
|---|---|---|
| Market Cap | 11.4B | 8.9B |
| Revenue | 1.35B | 1.50B |
| EBITDA | 382M | 185M |
| EBIT | 318M | 149M |
| Net Income | 235M | 99M |
| EPS | 0.75 | 0.58 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Bentley Systems, Incorporated
Bentley Systems showed a strong upward trend in revenue, increasing from $801M in 2020 to $1.35B in 2024, with net income rising from $126M to $235M. Margins remained robust, with a favorable gross margin near 81% and net margin around 17%. However, the latest year saw net margin and EPS decline despite solid revenue and EBIT growth, reflecting margin pressure.
Pegasystems Inc.
Pegasystems experienced steady revenue growth from $1.02B in 2020 to $1.50B in 2024, with net income improving markedly from a loss of $61M to a profit of $99M. Gross margin stayed favorable near 74%, while EBIT margin remained neutral at about 10%. The 2024 fiscal year showed slower revenue gains but strong improvements in net margin and EPS, signaling operational leverage.
Which one has the stronger fundamentals?
Both companies present favorable income statement fundamentals, with Bentley Systems excelling in margin levels and consistent revenue growth, albeit with recent margin softness. Pegasystems displays impressive net income recovery and margin expansion after prior losses, albeit with more moderated revenue growth. The differing margin stability and growth dynamics highlight distinct fundamental strengths.
Financial Ratios Comparison
The table below compares the most recent key financial ratios for Bentley Systems, Incorporated (BSY) and Pegasystems Inc. (PEGA) based on their 2024 fiscal year-end data.
| Ratios | Bentley Systems, Incorporated (BSY) | Pegasystems Inc. (PEGA) |
|---|---|---|
| ROE | 22.55% | 16.94% |
| ROIC | 9.30% | 7.40% |
| P/E | 62.63 | 80.12 |
| P/B | 14.13 | 13.57 |
| Current Ratio | 0.54 | 1.23 |
| Quick Ratio | 0.54 | 1.23 |
| D/E (Debt-to-Equity) | 1.37 | 0.94 |
| Debt-to-Assets | 41.96% | 31.09% |
| Interest Coverage | 12.20 | 18.12 |
| Asset Turnover | 0.40 | 0.85 |
| Fixed Asset Turnover | 20.47 | 14.36 |
| Payout Ratio | 30.72% | 10.28% |
| Dividend Yield | 0.49% | 0.13% |
Interpretation of the Ratios
Bentley Systems, Incorporated
Bentley Systems shows strong profitability with a favorable net margin of 17.35% and a robust return on equity at 22.55%, but its valuation metrics like PE ratio (62.63) and PB ratio (14.13) are unfavorable, suggesting a high market price relative to earnings and book value. Liquidity ratios are weak with a current ratio of 0.54, indicating potential short-term liquidity concerns. Bentley pays a dividend with a low yield of 0.49%, which may reflect cautious shareholder returns.
Pegasystems Inc.
Pegasystems exhibits a moderate net margin of 6.63% and a favorable return on equity at 16.94%, though its PE ratio is high at 80.12, indicating expensive valuation. Liquidity is more balanced with a current ratio of 1.23 and a favorable quick ratio, suggesting better short-term financial health than Bentley. Dividend yield is very low at 0.13%, which may signal a conservative payout or reinvestment strategy, consistent with its focus on growth and operational stability.
Which one has the best ratios?
Pegasystems holds a slightly favorable overall ratio profile with fewer unfavorable metrics and stronger liquidity, while Bentley Systems faces more valuation and liquidity challenges despite superior profitability. Both companies have an equal share of favorable ratios, but Bentley’s significant liquidity and valuation weaknesses weigh against its strong profitability metrics.
Strategic Positioning
This section compares the strategic positioning of Bentley Systems, Incorporated and Pegasystems Inc., including market position, key segments, and exposure to technological disruption:
Bentley Systems, Incorporated
- Market position and competitive pressure
- Key segments and business drivers
- Exposure to technological disruption
Pegasystems Inc.
- Leading infrastructure engineering software provider, facing moderate competition.
- Infrastructure design, simulation, project delivery, asset performance software.
- Focus on open modeling and simulation tools; potential impact from shifting infrastructure tech.
Bentley Systems, Incorporated vs Pegasystems Inc. Positioning
Bentley Systems pursues a diversified approach serving multiple infrastructure engineering niches, while Pegasystems concentrates on enterprise software and cloud-based automation. Bentley’s broad segment coverage contrasts with Pegasystems’ focused digital process innovation, each with distinct market implications.
Which has the best competitive advantage?
Both companies are slightly unfavorable in moat evaluation. Bentley shows declining ROIC and value shedding, while Pegasystems has growing ROIC but still destroys value, indicating neither currently holds a strong sustainable competitive advantage.
Stock Comparison
The stock price chart illustrates contrasting trajectories over the past 12 months, with Bentley Systems, Incorporated showing a significant decline while Pegasystems Inc. experienced a substantial rise before recent downward pressure.
Trend Analysis
Bentley Systems, Incorporated’s stock exhibited a bearish trend over the past year, declining by 24.99% with deceleration in its downward momentum and a standard deviation of 4.63. The price ranged from a high of 58.59 to a low of 38.15.
Pegasystems Inc. posted a bullish trend over the same period, increasing by 63.18% despite recent deceleration and a standard deviation of 10.77. Its price fluctuated between 28.73 and 66.27 before a recent decline of 18.32%.
Comparing both, Pegasystems delivered the highest market performance with a strong overall gain, whereas Bentley Systems faced a significant loss, reflecting divergent investor sentiment and market dynamics.
Target Prices
The consensus target prices indicate positive analyst expectations for both Bentley Systems, Incorporated and Pegasystems Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Bentley Systems, Incorporated | 55 | 45 | 48.75 |
| Pegasystems Inc. | 80 | 67 | 74 |
Analysts expect Bentley Systems’ price to rise significantly from the current 39.14 USD, while Pegasystems shows an even stronger upside potential from 51.99 USD. Both stocks present attractive targets above their current prices.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Bentley Systems, Incorporated and Pegasystems Inc.:
Rating Comparison
BSY Rating
- Rating: B-, evaluated as Very Favorable by analysts.
- Discounted Cash Flow Score: 4, indicating a Favorable outlook on future cash flow valuations.
- ROE Score: 4, Favorable, reflecting efficient profit generation from shareholders’ equity.
- ROA Score: 4, Favorable, showing effective asset utilization for earnings.
- Debt To Equity Score: 1, Very Unfavorable, suggesting higher financial risk due to leverage.
- Overall Score: 3, Moderate, summarizing a balanced but cautious financial standing.
PEGA Rating
- Rating: B+, also rated Very Favorable by analysts.
- Discounted Cash Flow Score: 3, assessed as Moderate, showing a more cautious valuation.
- ROE Score: 5, Very Favorable, indicating superior profit efficiency compared to BSY.
- ROA Score: 5, Very Favorable, outperforming BSY in asset utilization efficiency.
- Debt To Equity Score: 3, Moderate, indicating a more balanced financial risk profile than BSY.
- Overall Score: 3, Moderate, reflecting a similar overall financial assessment as BSY.
Which one is the best rated?
Based strictly on provided data, PEGA holds a higher rating (B+ vs. B-) and superior profitability scores (ROE and ROA), while BSY scores better in discounted cash flow. PEGA’s moderate debt-to-equity score is more favorable than BSY’s very unfavorable rating.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Bentley Systems and Pegasystems:
BSY Scores
- Altman Z-Score: 3.74, indicating a safe zone status
- Piotroski Score: 9, classified as very strong
PEGA Scores
- Altman Z-Score: 10.31, indicating a safe zone status
- Piotroski Score: 8, classified as very strong
Which company has the best scores?
Pegasystems has a higher Altman Z-Score than Bentley Systems, indicating stronger financial stability. Bentley Systems has a slightly better Piotroski Score, suggesting marginally stronger financial health.
Grades Comparison
The following section compares the recent grades assigned to Bentley Systems, Incorporated and Pegasystems Inc. by recognized grading companies:
Bentley Systems, Incorporated Grades
This table summarizes the most recent grades from reliable grading companies for Bentley Systems, Incorporated.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Downgrade | Neutral | 2026-01-13 |
| Barclays | Maintain | Equal Weight | 2026-01-12 |
| RBC Capital | Maintain | Outperform | 2026-01-05 |
| Baird | Maintain | Outperform | 2025-11-06 |
| Rosenblatt | Maintain | Buy | 2025-11-06 |
| Piper Sandler | Maintain | Overweight | 2025-11-06 |
| JP Morgan | Maintain | Neutral | 2025-11-06 |
| Rosenblatt | Upgrade | Buy | 2025-10-17 |
| Piper Sandler | Maintain | Overweight | 2025-08-07 |
| Goldman Sachs | Maintain | Sell | 2025-08-07 |
The overall trend shows a mix of Buy, Outperform, and Neutral grades, with a recent downgrade by Piper Sandler to Neutral.
Pegasystems Inc. Grades
This table presents recent grades from verified grading companies 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 Inc. consistently received Buy and Outperform grades, with no recent downgrades and some upgrades.
Which company has the best grades?
Pegasystems Inc. holds generally stronger and more consistent Buy and Outperform grades compared to Bentley Systems, which shows a wider range from Sell to Outperform. This suggests Pegasystems may be viewed more favorably by analysts, potentially implying different risk and reward profiles for investors.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Bentley Systems, Incorporated (BSY) and Pegasystems Inc. (PEGA) based on the latest financial and operational data from 2024.
| Criterion | Bentley Systems, Incorporated (BSY) | Pegasystems Inc. (PEGA) |
|---|---|---|
| Diversification | Strong diversification with substantial revenue from subscriptions/licenses (1.27B USD) and services (84.4M USD). | Moderate diversification, with dominant revenue from Pega Cloud (1.13B USD) and balanced license and consulting streams. |
| Profitability | Solid net margin at 17.35% and ROE at 22.55%, but ROIC is slightly above WACC (9.3% vs 8.95%) with declining trend. | Lower net margin at 6.63%, ROE at 16.94%, ROIC below WACC (7.4% vs 8.58%) but improving profitability trend. |
| Innovation | Moderate innovation reflected in strong fixed asset turnover (20.47) but slower asset turnover overall (0.4). | Good innovation capacity with improving ROIC trend and favorable fixed asset turnover (14.36). |
| Global presence | Established global presence with consistent subscription growth and multiple license types. | Expanding global footprint with significant cloud-based offerings and growing subscription base. |
| Market Share | Strong within engineering software niche but faces challenges in maintaining value (negative ROIC-WACC spread). | Improving market share in cloud and subscription software, with growing profitability despite current value shedding. |
Key takeaways: Bentley Systems excels in diversification and profitability metrics but faces a declining return on invested capital, signaling caution. Pegasystems shows promising growth in profitability and innovation with cloud leadership, though it currently operates below cost of capital. Investors should weigh Bentley’s stability against Pegasystems’ growth potential with careful risk management.
Risk Analysis
Below is a comparative table highlighting key risks for Bentley Systems, Incorporated (BSY) and Pegasystems Inc. (PEGA) based on the latest 2024 data.
| Metric | Bentley Systems, Incorporated (BSY) | Pegasystems Inc. (PEGA) |
|---|---|---|
| Market Risk | High beta (1.214), high P/E (62.63) implies volatility and valuation risk | Moderate beta (1.084), very high P/E (80.12) indicates overvaluation risk |
| Debt Level | Elevated debt-to-equity ratio (1.37), interest coverage favorable (12.83) | Moderate debt-to-equity (0.94), strong interest coverage (21.87) |
| Regulatory Risk | Moderate, technology sector subject to evolving data/privacy laws | Moderate, exposure to diverse regulated sectors like healthcare, finance |
| Operational Risk | Moderate, dependent on infrastructure software innovation and project delivery | Moderate, reliant on enterprise software development and cloud services |
| Environmental Risk | Low, software-focused with limited physical environmental impact | Low, primarily software and cloud-based business model |
| Geopolitical Risk | Moderate, global presence in infrastructure markets but concentrated in US | Moderate, global software services with exposure to geopolitical tensions |
Bentley Systems faces significant market and debt risks due to its high leverage and valuation multiples. Pegasystems carries valuation risk with a very high P/E and moderate operational exposure. Both companies maintain strong interest coverage, reducing default risk. Regulatory and geopolitical risks are moderate for both given their global tech profiles. Investors should weigh valuation and leverage carefully.
Which Stock to Choose?
Bentley Systems, Incorporated (BSY) shows favorable income growth with a 68.81% revenue increase over five years and strong profitability ratios, including a 22.55% ROE. However, it faces challenges with high debt (net debt to EBITDA 3.56) and several unfavorable financial ratios, resulting in a slightly unfavorable global ratio opinion despite a very favorable B- rating.
Pegasystems Inc. (PEGA) presents moderate income growth, with a 47.14% revenue increase and solid profitability markers like a 16.94% ROE. Its debt level is lower (net debt to EBITDA 1.15) and financial ratios are generally neutral to favorable, culminating in a slightly favorable global ratio opinion and a very favorable B+ rating.
Considering the ratings and financial evaluations, BSY’s strong profitability contrasts with its high leverage and unfavorable ratios, while PEGA offers a more balanced financial profile with improving profitability. Growth-focused investors might find BSY’s income growth attractive, whereas those prioritizing financial stability and moderate risk could view PEGA more favorably.
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 Bentley Systems, Incorporated and Pegasystems Inc. to enhance your investment decisions:
