Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Pegasystems Inc. or Teradata Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Pegasystems Inc. and Teradata Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Pegasystems Inc. and Teradata Corporation

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, which can predict a customer’s behavior and recommend the next best action to take across channels in real-time; 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, a software for AI-powered workflow automation for increasing the efficiency of clients’ processes and operational 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 GenAI Blueprint to rapidly prototype and accelerate the development and deployment of applications; 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 enablement content for Pega product implementations, such as 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 Waltham, Massachusetts.

Teradata Corporation, together with its subsidiaries, provides a connected hybrid cloud analytics and data platform in the United States and internationally. The company operates in two segments, Product Sales and Consulting Services. It offers Teradata Vantage, an open and connected platform designed to leverage data across an enterprise. The company’s consulting services include support services for organizations to establish a data analytics and AI/ML vision, enable a hybrid ecosystem architecture, and identify and operationalize opportunities. It offers support and maintenance services. The company serves clients in financial services, government, healthcare and life sciences, public, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.

Latest Software and Pegasystems Inc., Teradata Corporation Stock News

As of December 11, 2025, Pegasystems Inc. had a $10.4 billion market capitalization, compared to the Software median of $1.2 million. Pegasystems Inc.’s stock is up 31.8% in 2025, up 7.8% in the previous five trading days and up 30.14% in the past year.

Currently, Pegasystems Inc.’s price-earnings ratio is 42.0. Pegasystems Inc.’s trailing 12-month revenue is $1.7 billion with a 16.0% net profit margin. Year-over-year quarterly sales growth most recently was 17.3%. Analysts expect adjusted earnings to reach $2.081 per share for the current fiscal year. Pegasystems Inc. currently has a 0.2% dividend yield.

As of December 11, 2025, Teradata Corporation had a $3.0 billion market cap, putting it in the 61st percentile of all stocks. Teradata Corporation’s stock is up 2.1% in 2025, up 6.9% in the previous five trading days and down 1.88% in the past year.

Currently, Teradata Corporation’s price-earnings ratio is 26.3. Teradata Corporation’s trailing 12-month revenue is $1.7 billion with a 7.1% net profit margin. Year-over-year quarterly sales growth most recently was -5.5%. Analysts expect adjusted earnings to reach $2.404 per share for the current fiscal year. Teradata Corporation does not currently pay a dividend.

How We Compare Pegasystems Inc. and Teradata Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Pegasystems Inc. and Teradata Corporation’s stock grades to see how they measure up against one another.

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Pegasystems Inc. and Teradata Corporation Stock Value Grades

Company	Ticker	Value
Pegasystems Inc.	PEGA	F
Teradata Corporation	TDC	C

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Pegasystems Inc. has a Value Score of 14, which is Ultra Expensive. Teradata Corporation has a Value Score of 47, which is Average.

The Value Stock Winner: No Clear Winner

Neither Pegasystems Inc. or Teradata Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Pegasystems Inc. or Teradata Corporation is the better investment when it comes to value.

Pegasystems Inc. and Teradata Corporation Growth Grades

Company	Ticker	Growth
Pegasystems Inc.	PEGA	B
Teradata Corporation	TDC	D

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Pegasystems Inc. has a Growth Score of 63, which is Strong. Teradata Corporation has a Growth Score of 25, which is Weak.

The Growth Grade Winner: Pegasystems Inc.

As you can clearly see from the Growth Grade breakdown above, Pegasystems Inc. has a more attractive growth grade than Teradata Corporation. For investors who focus solely on how a company is growing relative to other companies in the same industry, Pegasystems Inc. could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Pegasystems Inc. and Teradata Corporation’s Quality Grades

Company	Ticker	Quality
Pegasystems Inc.	PEGA	A
Teradata Corporation	TDC	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Pegasystems Inc. has a Quality Score of 99, which is Very Strong. Teradata Corporation has a Quality Score of 94, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Pegasystems Inc. and Teradata Corporation have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Other Pegasystems Inc. and Teradata Corporation Grades

In addition to Growth, Quality and Value, A+ Investor also provides grades for Momentum and Estimate Revisions.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Pegasystems Inc. and Teradata Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Pegasystems Inc. or Teradata Corporation Stock?

Overall, Pegasystems Inc. stock has a Value Score of 14, Growth Score of 63 and Quality Score of 99.

Teradata Corporation stock has a Value Score of 47, Growth Score of 25 and Quality Score of 94.

Comparing Pegasystems Inc. and Teradata Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.