Head to Head Review: Pegasystems (NASDAQ:PEGA) vs. Xylo Technologies (NASDAQ:XYLO)

Xylo Technologies (NASDAQ:XYLO) and Pegasystems (NASDAQ:PEGA) are both business services companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

0.3% of Xylo Technologies shares are held by institutional investors. Comparatively, 46.9% of Pegasystems shares are held by institutional investors. 2.2% of Xylo Technologies shares are held by insiders. Comparatively, 50.1% of Pegasystems shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xylo Technologies	N/A	N/A	N/A
Pegasystems	8.29%	37.83%	10.18%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xylo Technologies	$91.72 million	0.03	-$16.02 million	N/A	N/A
Pegasystems	$1.48 billion	5.52	$67.81 million	$1.37	69.52

Pegasystems has higher revenue and earnings than Xylo Technologies.

Volatility and Risk

Xylo Technologies has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Pegasystems has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Xylo Technologies and Pegasystems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xylo Technologies	0	0	0	0	0.00
Pegasystems	0	3	8	0	2.73

Pegasystems has a consensus target price of $89.00, suggesting a potential downside of 6.55%. Given Pegasystems’ stronger consensus rating and higher possible upside, analysts clearly believe Pegasystems is more favorable than Xylo Technologies.

Summary

Pegasystems beats Xylo Technologies on 12 of the 12 factors compared between the two stocks.

About Xylo Technologies

Xylo Technologies Ltd, a technology-based company, provides medical-related devices and products in the United States, Europe, Asia, Israel, and internationally. The company operates through Corporate, E-commerce, Online Advertising & Internet Traffic Routing, Online Event Management, and Others segments. It offers Medigus Ultrasonic Surgical Endostapler, an endoscopy system, which is used for the treatment of gastroesophageal reflux disease. The company also develops biological gels to protect patients against biological threats and reduce the intrusion of allergens and viruses through the upper airways and eye cavities. In addition, it provides digital advertising platform; and operates online stores for the sale of various consumer products on the Amazon online marketplace, as well as an online event management and ticketing platform. Further, the company develops wireless vehicle battery charging technologies and modular electronic vehicles. The company was formerly known as Medigus Ltd. and changed its name to Xylo Technologies Ltd in April 2024. Xylo Technologies Ltd was incorporated in 1999 and is headquartered in Tel Aviv-Yafo, Israel.

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.