In today’s rapidly evolving tech landscape, two companies stand out in the application software industry: PTC Inc. and Bentley Systems, Incorporated. Both firms are leaders in innovative software solutions, each catering to distinct markets while sharing a commitment to digital transformation. PTC focuses on product lifecycle management and IoT solutions, whereas Bentley excels in infrastructure engineering software. In this article, I will analyze their strengths and weaknesses to help you determine which company might be the more compelling investment opportunity.
Table of contents
Company Overview
PTC Overview
PTC Inc., headquartered in Boston, Massachusetts, is a leading provider of software and services aimed at digital transformation in various industries. Founded in 1985, PTC specializes in a range of innovative solutions, including its flagship ThingWorx platform, which facilitates the Internet of Things (IoT) integration and accelerates businesses’ digital initiatives. The company also offers products such as Onshape for collaborative design, Vuforia for augmented reality applications, and Windchill for product lifecycle management. With a market capitalization of approximately $20.8B and a workforce of around 7,512 employees, PTC is well-positioned in the technology sector, particularly in application software.
Bentley Systems Overview
Bentley Systems, Incorporated, based in Exton, Pennsylvania, focuses on providing advanced software solutions for infrastructure engineering. Established in 1984, Bentley offers a diverse portfolio that includes open modeling and simulation applications, project delivery systems, and asset performance management tools. Its solutions cater to civil, structural, and geotechnical engineers, among others, enhancing the design and management of infrastructure projects. With a market capitalization of about $11.98B and approximately 5,500 employees, Bentley Systems has carved a niche in the software market, emphasizing collaborative and integrated engineering practices.
Key similarities between PTC and Bentley Systems include their focus on software applications within the technology sector and their commitment to enhancing business efficiency through digital solutions. However, they differ in their target markets; PTC emphasizes IoT and product lifecycle management, while Bentley concentrates on infrastructure engineering and asset management.
Income Statement Comparison
In this section, I will compare the recent income statements of PTC Inc. and Bentley Systems, Incorporated, highlighting key financial metrics for the most recent fiscal year.
| Metric | PTC Inc. | Bentley Systems, Inc. |
|---|---|---|
| Revenue | 2.74B | 1.35B |
| EBITDA | 1.06B | 382M |
| EBIT | 930M | 318M |
| Net Income | 741M | 234M |
| EPS | 6.18 | 0.75 |
Interpretation of Income Statement
Over the last fiscal year, PTC demonstrated strong revenue growth of 19% compared to its prior year, resulting in a net income increase to 741M from 376M. Meanwhile, Bentley Systems also showed improvement, with revenue rising to 1.35B, reflecting a solid increase from 1.22B. Both companies maintained stable margins, although PTC’s EBITDA margin of approximately 39% is notably higher than Bentley’s 28%. In the most recent year, PTC’s growth rate indicates continued market strength, while Bentley’s performance suggests a recovery trajectory, albeit at a slower pace. Overall, investors should weigh potential growth against the relative risk profiles of these companies.
Financial Ratios Comparison
In this section, I present a comparative overview of the most recent financial metrics for two companies, PTC Inc. and Bentley Systems, Incorporated. This will help investors evaluate their financial health and performance.
| Metric | PTC Inc. | Bentley Systems |
|---|---|---|
| ROE | 19.33% | 22.55% |
| ROIC | 14.77% | 9.30% |
| P/E | 32.88 | 62.63 |
| P/B | 6.36 | 14.13 |
| Current Ratio | 0.96 | 0.55 |
| Quick Ratio | 0.96 | 0.55 |
| D/E | 0.36 | 1.37 |
| Debt-to-Assets | 20.68% | 47.91% |
| Interest Coverage | N/A | 12.20 |
| Asset Turnover | 0.41 | 0.40 |
| Fixed Asset Turnover | 15.58 | 20.47 |
| Payout Ratio | 0% | 30.72% |
| Dividend Yield | 0% | 0.49% |
Interpretation of Financial Ratios
Both companies exhibit strengths and weaknesses. PTC shows a strong return on equity (ROE) and a healthier current ratio, indicating good short-term financial health. However, its high P/E ratio suggests it is priced for growth, which could imply risk. Conversely, Bentley Systems has a robust interest coverage ratio, indicating a strong ability to meet interest obligations, but its higher debt-to-assets ratio raises concerns about leverage and financial stability. Investors should weigh these factors carefully when considering investments.
Dividend and Shareholder Returns
PTC Inc. does not pay dividends, focusing instead on reinvestment for growth, which aligns with its high-growth strategy. The absence of dividends suggests a prioritization of research and development, potentially enhancing long-term shareholder value. However, PTC engages in share buybacks, indicating a commitment to returning capital to shareholders.
Conversely, Bentley Systems, Incorporated offers a modest dividend yield of 0.49% with a payout ratio of 30.7%. This balanced approach reflects a commitment to both growth through reinvestment and shareholder returns. The sustainability of these distributions will depend on ongoing profitability and cash flow generation.
Strategic Positioning
PTC Inc. holds a robust market share in the software application sector, primarily through its ThingWorx and Vuforia platforms, which drive digital transformation and augmented reality solutions. In contrast, Bentley Systems focuses on infrastructure engineering software, offering a suite of modeling and simulation tools. Competitive pressure is high for both companies, with ongoing technological disruptions necessitating continuous innovation. As they navigate these challenges, effective risk management strategies will be crucial for sustaining market positions.
Stock Comparison
Over the past year, PTC Inc. (PTC) has demonstrated notable price movements, particularly with a bullish trend overall, despite recent volatility. In contrast, Bentley Systems, Incorporated (BSY) has faced a bearish trajectory, marked by a significant decline in price.
Trend Analysis
For PTC, the overall price change stands at +4.81% over the past year, indicating a bullish trend. However, recent performance from September 14, 2025, to November 30, 2025, shows a significant drop of -15.25%. The highest price recorded was 215.05, while the lowest was 139.77. The stock is experiencing a deceleration in trend acceleration, with a standard deviation of 15.43, suggesting moderate volatility.
Conversely, BSY has experienced a price change of -12.35% over the past year, confirming a bearish trend. The recent decline is even steeper at -22.63% during the same period. The stock peaked at 58.59 and reached a low of 38.66. The acceleration status is also decelerating, with a standard deviation of 4.02, reflecting lower volatility than PTC.
Overall, while PTC shows potential recovery signs, caution is advised given the recent downturn. BSY’s sustained bearish trend necessitates a careful assessment for investors considering entry points.
Analyst Opinions
Recent analyst assessments indicate a mixed outlook for PTC Inc. and Bentley Systems. PTC has received a rating of B+, with strong scores in return on equity and assets, suggesting a buy recommendation from several analysts due to its robust financial health. Conversely, Bentley Systems holds a B- rating, with analysts recommending a hold as its lower debt-to-equity ratio raises concerns. Overall, the consensus leans toward a buy for PTC, while Bentley Systems is viewed with caution, indicating a more neutral stance for the current year.
Stock Grades
Here’s a look at the latest stock ratings for PTC Inc. and Bentley Systems, Incorporated, which can help you make informed investment decisions.
PTC Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | maintain | Neutral | 2025-11-07 |
| Rosenblatt | maintain | Buy | 2025-11-06 |
| Rosenblatt | maintain | Buy | 2025-10-30 |
| Barclays | maintain | Overweight | 2025-07-31 |
| Piper Sandler | maintain | Neutral | 2025-07-31 |
| Oppenheimer | maintain | Outperform | 2025-07-31 |
| Rosenblatt | maintain | Buy | 2025-07-31 |
| Keybanc | maintain | Overweight | 2025-07-31 |
| RBC Capital | maintain | Outperform | 2025-07-31 |
| Stifel | maintain | Buy | 2025-07-31 |
Bentley Systems, Incorporated Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | maintain | Outperform | 2025-11-06 |
| Piper Sandler | maintain | Overweight | 2025-11-06 |
| JP Morgan | maintain | Neutral | 2025-11-06 |
| Rosenblatt | maintain | Buy | 2025-11-06 |
| Rosenblatt | upgrade | Buy | 2025-10-17 |
| Goldman Sachs | maintain | Sell | 2025-08-07 |
| Rosenblatt | downgrade | Neutral | 2025-08-07 |
| Piper Sandler | maintain | Overweight | 2025-08-07 |
| UBS | maintain | Neutral | 2025-08-07 |
| Oppenheimer | maintain | Outperform | 2025-08-07 |
Overall, both companies are maintaining their grades, with PTC showing a consistent performance across multiple grading firms and Bentley Systems experiencing slight upgrades and downgrades, indicating some fluctuations in investor sentiment. It’s essential to monitor these trends as they can affect your investment strategy moving forward.
Target Prices
The consensus target prices for PTC Inc. and Bentley Systems, Incorporated reflect optimistic expectations from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| PTC Inc. | 255 | 120 | 213.25 |
| Bentley Systems, Inc. | 64 | 57 | 60.5 |
Analysts expect PTC Inc. to reach a consensus target of 213.25, substantially above its current price of 173.78. Meanwhile, Bentley Systems has a target consensus of 60.5, which is also above its current price of 41.03, indicating potential growth for both stocks.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of PTC Inc. and Bentley Systems, Incorporated based on the most recent data.
| Criterion | PTC Inc. | Bentley Systems, Incorporated |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | High (27%) | Moderate (17%) |
| Innovation | High | High |
| Global presence | Strong | Strong |
| Market Share | Moderate | Moderate |
| Debt level | Low (20%) | High (42%) |
Key takeaways: PTC shows strong profitability and low debt, making it a safer investment, while Bentley excels in diversification and innovation but carries higher debt levels.
Risk Analysis
The table below summarizes the key risks associated with each company for the year 2025.
| Metric | PTC Inc. (PTC) | Bentley Systems (BSY) |
|---|---|---|
| Market Risk | Medium | High |
| Regulatory Risk | Medium | Medium |
| Operational Risk | Low | Medium |
| Environmental Risk | Low | High |
| Geopolitical Risk | Medium | Medium |
In summary, PTC faces moderate market and regulatory risks, with low operational and environmental risks. In contrast, Bentley Systems encounters higher market and environmental risks, which could significantly impact its performance.
Which one to choose?
In comparing PTC Inc. (PTC) and Bentley Systems, Incorporated (BSY), PTC exhibits stronger financial fundamentals. PTC has a higher net profit margin of 27.05% compared to BSY’s 17.35%, suggesting greater efficiency in converting revenue to profit. PTC’s return on equity (ROE) stands at 19.33% versus BSY’s 22.55%, indicating robust profitability. Additionally, PTC’s stock trend is currently bullish, with a recent price change of +4.81%, while BSY is in a bearish trend, down -12.35%.
Given these factors, investors focused on growth may prefer PTC for its superior margins and positive stock movement, while those prioritizing stability might still consider BSY, albeit with caution.
Investors should be aware of potential risks, including market competition and valuation pressures affecting both companies.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of PTC Inc. and Bentley Systems, Incorporated to enhance your investment decisions:
