Dynatrace vs Pegasystems

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KIRA’s take AI analyst

I put Dynatrace and Pegasystems side by side, using each one’s latest annual report. Here is what stands out:

Dynatrace is the larger business, with $2.0B of revenue in fiscal 2026 against $1.7B for Pegasystems.
Dynatrace grew revenue faster (18.8%, against 16.6%).
Pegasystems kept more of each dollar of sales as operating profit (15.1% operating margin, against 12.2%).
Pegasystems turned more of its sales into free cash flow (28.1% FCF margin, against 26.2%).
Investors pay more for each dollar of Dynatrace’s earnings: a P/E of 128.4x against 22.6x for Pegasystems.

Who comes out ahead

Of the 9 measures where higher (or lower) is clearly better, how many each company leads.

Dynatrace

4/9

Revenue growth5-year growthGross marginShare count change

Pegasystems

PEGA

5/9

Operating marginNet marginFCF marginReturn on equityPiotroski F-score

Side by side

Best in the row

Latest fiscal year	DT FY26	PEGA FY25
Size
Market cap	$18.8B	$6.1B
Revenue	$2.0B	$1.7B
Free cash flow	$530M	$491M
Net income	$163M	$393M
Growth
Revenue growth	18.8%	16.6%
5-year growth	23.5%	11.4%
Share count change	0.0%	3.1%
Profitability
Gross margin	81.6%	75.9%
Operating margin	12.2%	15.1%
Net margin	8.1%	22.5%
FCF margin	26.2%	28.1%
Return on capital	9.0%	—
Return on equity	6.2%	57.3%
Balance sheet
Net debt	−$1.2B	−$426M
Net debt / EBITDA	—	−1.5x
Dividends and buybacks	$479M	$515M
Valuation & quality
P/E	128.4x	22.6x
Piotroski F-score	4	6

Ten years

Revenue

FY17

DT —

PEGA $889M

FY18

DT $398M

PEGA $892M

FY19

DT $431M

PEGA $911M

FY20

DT $546M

PEGA $1.0B

FY21

DT $704M

PEGA $1.2B

FY22

DT $929M

PEGA $1.3B

FY23

DT $1.2B

PEGA $1.4B

FY24

DT $1.4B

PEGA $1.5B

FY25

DT $1.7B

PEGA $1.7B

FY26

DT $2.0B

PEGA —

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

DT PEGA

Operating margin

FY17

DT —

PEGA 10.5%

FY18

DT −5.5%

PEGA −1.9%

FY19

DT −16.9%

PEGA −14.8%

FY20

DT −31.5%

PEGA −14.1%

FY21

DT 13.1%

PEGA −7.8%

FY22

DT 8.8%

PEGA −8.3%

FY23

DT 8.0%

PEGA 5.7%

FY24

DT 9.0%

PEGA 8.3%

FY25

DT 10.6%

PEGA 15.1%

FY26

DT 12.2%

PEGA —

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

DT PEGA

Free cash flow

FY17

DT —

PEGA $144M

FY18

DT $107M

PEGA $92.5M

FY19

DT $140M

PEGA −$52.8M

FY20

DT −$162M

PEGA −$25.9M

FY21

DT $206M

PEGA $28.7M

FY22

DT $233M

PEGA −$13.0M

FY23

DT $333M

PEGA $201M

FY24

DT $352M

PEGA $338M

FY25

DT $433M

PEGA $491M

FY26

DT $530M

PEGA —

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

DT PEGA

Return on capital

FY17

DT —

PEGA —

FY18

DT —

PEGA —

FY19

DT —

PEGA —

FY20

DT −14.8%

PEGA −21.3%

FY21

DT 7.3%

PEGA −12.1%

FY22

DT 5.2%

PEGA −16.1%

FY23

DT 8.6%

PEGA 13.4%

FY24

DT 11.5%

PEGA —

FY25

DT 13.4%

PEGA —

FY26

DT 9.0%

PEGA —

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

DT PEGA

Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.