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 HubSpot, Inc. or Pegasystems Inc. 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 HubSpot, Inc. and Pegasystems Inc. compare based on key financial metrics to determine which better meets your investment needs.

About HubSpot, Inc. and Pegasystems Inc.

HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company’s CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Hub enables businesses to create new and edit existing web content. It offers Operations Hub, which is designed for customer data to automate business processes, data cleanup, and provide customer insights and connections; and Commerce Hub, a B2B commerce suite. In addition, the company provides professional services to educate and train customers on how to utilize its CRM platform; and customer success, as well as phone and/or email and chat-based support services. It serves mid-market business-to-business companies. The company was incorporated in 2005 and is headquartered in Cambridge, Massachusetts.

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.

Latest Software and HubSpot, Inc., Pegasystems Inc. Stock News

As of December 10, 2025, HubSpot, Inc. had a $20.6 billion market capitalization, compared to the Software median of $1.2 million. HubSpot, Inc.’s stock is down 44.1% in 2025, up 3.4% in the previous five trading days and down 47.08% in the past year.

Currently, HubSpot, Inc. does not have a price-earnings ratio. HubSpot, Inc.’s trailing 12-month revenue is $3.0 billion with a -0.1% net profit margin. Year-over-year quarterly sales growth most recently was 20.9%. Analysts expect adjusted earnings to reach $9.589 per share for the current fiscal year. HubSpot, Inc. does not currently pay a dividend.

As of December 10, 2025, Pegasystems Inc. had a $10.4 billion market cap, putting it in the 79th percentile of all stocks. Pegasystems Inc.’s stock is up 33.5% in 2025, up 9.1% in the previous five trading days and up 27.2% in the past year.

Currently, Pegasystems Inc.’s price-earnings ratio is 41.9. 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.

How We Compare HubSpot, Inc. and Pegasystems Inc. 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 HubSpot, Inc. and Pegasystems Inc.’s stock grades to see how they measure up against one another.

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HubSpot, Inc. and Pegasystems Inc. Growth Grades

Company	Ticker	Growth
HubSpot, Inc.	HUBS	B
Pegasystems Inc.	PEGA	B

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.

HubSpot, Inc. has a Growth Score of 70, which is Strong. Pegasystems Inc. has a Growth Score of 63, which is Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both HubSpot, Inc. and Pegasystems Inc. have a grade of B. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

HubSpot, Inc. and Pegasystems Inc.’s Momentum Grades

Company	Ticker	Momentum
HubSpot, Inc.	HUBS	F
Pegasystems Inc.	PEGA	B

Momentum grades help to 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. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

HubSpot, Inc. has a Momentum Score of 11, which is Very Weak. Pegasystems Inc. has a Momentum Score of 69, which is Strong.

The Momentum Grade Winner: Pegasystems Inc.

As you can clearly see from the Momentum Grade breakdown above, Pegasystems Inc. is considered to have stronger momentum compared to HubSpot, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Pegasystems Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

HubSpot, Inc. and Pegasystems Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
HubSpot, Inc.	HUBS	B
Pegasystems Inc.	PEGA	C

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

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

HubSpot, Inc. has a Earnings Estimate Score of 61, which is Positive. Pegasystems Inc. has a Earnings Estimate Score of 52, which is Neutral.

The Earnings Estimate Revisions Grade Winner: HubSpot, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, HubSpot, Inc. has a better Earnings Estimate Revisions Grade than Pegasystems Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, HubSpot, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other HubSpot, Inc. and Pegasystems Inc. Grades

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

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 Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite 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 F-Score.

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 HubSpot, Inc. and Pegasystems Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

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

Overall, HubSpot, Inc. stock has a Growth Score of 70, Momentum Score of 11 and Estimate Revisions Score of 61.

Pegasystems Inc. stock has a Growth Score of 63, Momentum Score of 69 and Estimate Revisions Score of 52.

Comparing HubSpot, Inc. and Pegasystems Inc.’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.