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FRSH vs PEGA
Which Stock Would AI Choose? Freshworks (FRSH) vs. Pegasystems (PEGA) Stock Comparison
Key Takeaways
- FRSH has gained momentum recently after reaching GAAP profitability ahead of schedule and joining S&P indices, while PEGA has fallen sharply on slowing growth and AI-driven deal delays.
- Both companies are enterprise software vendors with AI narratives, but their near-term trajectories have diverged significantly.
- Freshworks is accelerating in its Employee Experience (EX) business, while Pegasystems is navigating softer annual contract value (ACV) growth.
- Pegasystems is a much larger business with strong free cash flow, buybacks, and a dividend, whereas Freshworks is earlier in its profitability cycle.
- Analyst consensus is "Buy" on both names, but Pegasystems carries a larger implied upside after its share-price reset.
- Relative performance and market positioning favor different investor profiles: momentum versus value-oriented.
Introduction
Freshworks and Pegasystems both sell software that helps businesses run customer-facing and internal workflows, yet they sit at very different stages of their corporate and market lifecycles. This stock comparison is useful for investors weighing an AI-driven growth story against a larger, cash-generative incumbent undergoing a transition. Freshworks, a younger SaaS (software-as-a-service) provider, has recently crossed into profitability and earned a place in major equity indices. Pegasystems, an established workflow-automation and low-code leader, is contending with slower bookings as enterprise buyers hesitate amid rapid AI market shifts. Comparing their relative performance, growth drivers, and risk profiles can clarify which characteristics align with a given trader's or investor's objectives.
FRSH Overview and Recent Performance
FRSH, Freshworks Inc., provides AI-powered SaaS for customer experience (CX) and employee experience (EX) through products such as Freshdesk and Freshservice. In recent weeks, the stock has drawn investor attention after the company reached GAAP (Generally Accepted Accounting Principles) profitability ahead of its prior schedule and was added to multiple S&P indices, including the S&P SmallCap 600. Its EX business has been the standout, with annual recurring revenue (ARR, the yearly value of subscription contracts) growing roughly 24% year over year, while its CX segment has expanded at a more modest single-digit pace. Recent market activity has also been shaped by Freshworks' agreement to acquire Torii, an acquisition aimed at broadening its service-management capabilities, and by steady AI attach rates across its customer base. The result has been a notable upward repricing, though revenue growth itself has remained in the mid-teens rather than accelerating.
PEGA Overview and Recent Performance
PEGA, Pegasystems Inc., develops enterprise software for workflow automation, case management, and decisioning, anchored by the Pega Cloud platform and the Pega Infinity 26 suite. The company has been transitioning toward a subscription-heavy model, and Pega Cloud ACV has grown roughly 22% year over year, reflecting strong cloud adoption. However, recent performance has been pressured: management has cited client purchase delays tied to AI market uncertainty, which slowed total ACV growth and contributed to an earnings miss that sent the shares sharply lower. Despite the top-line softness, Pegasystems remains strongly cash-generative, reporting record first-half free cash flow (cash from operations minus capital spending), executing substantial share repurchases, and paying a quarterly dividend. In recent weeks the stock has shown some recovery, supported by analyst reiterations and a technical move above longer-term averages, though it remains well below prior-year levels.
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Head-to-Head Comparison
The two companies differ most sharply in scale and growth trajectory. Pegasystems generates roughly $1.8 billion in annual revenue, more than double Freshworks' trailing revenue of about $900 million, and it converts that scale into substantial free cash flow that funds buybacks and a dividend. Freshworks, by contrast, is leaner and only recently profitable, with a growth rate in the mid-teens that, while decelerating, is still faster than Pegasystems' single-digit top-line growth. On momentum, the gap is striking: Freshworks has enjoyed positive relative performance in recent weeks on profitability milestones and index inclusion, whereas Pegasystems has been in a corrective phase tied to slower ACV growth and downward estimate revisions. Risk profiles also diverge—Pegasystems faces execution risk in converting its cloud and AI pipeline into bookings, while Freshworks faces the challenge of sustaining its EX-led expansion and proving AI monetization at scale. From a sentiment standpoint, both carry "Buy" consensus ratings, but Pegasystems' depressed valuation implies a larger potential upside if its second-half bookings recover.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor Freshworks over Pegasystems in the current environment. Freshworks exhibits more consistent near-term trend characteristics—an intact upward trajectory, a newly achieved profitability milestone, and catalyst-rich index inclusions—that algorithmic models tend to reward. Pegasystems, while fundamentally sound and cash-generative, currently shows weaker momentum, decelerating ACV growth, and a more back-loaded recovery story that introduces greater uncertainty. That said, the verdict is probabilistic rather than definitive: a sustained rebound in Pegasystems' bookings or a disappointment in Freshworks' next results could shift relative positioning. The AI's preference rests on trend consistency and catalyst clarity, not a judgment of long-term intrinsic quality.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is FRSH is a Hold and PEGA is a Hold.
FRSH's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for FRSH turned positive on October 01, 2026. Looking at past instances where FRSH's MACD turned positive, the stock continued to rise in 43 of 51 cases over the following month. The odds of a continued upward trend are 84%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 30, 2026. You may want to consider a long position or call options on FRSH as a result. In 82 of 101 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 81%.
Following a +8.08% 3-day Advance, the price is estimated to grow further. Considering data from situations where FRSH advanced for three days, in 207 of 293 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
The Aroon Indicator entered an Uptrend today. In 132 of 180 cases where FRSH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 73%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FRSH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
FRSH broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 35 (best 1 - 100 worst), indicating steady price growth. FRSH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 47 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.462) is normal, around the industry mean (-1.734). P/E Ratio (24.317) is within average values for comparable stocks, (15.183). Projected Growth (PEG Ratio) (0.509) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.074) among similar stocks. P/S Ratio (3.995) is also within normal values, averaging (71.128).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FRSH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
PEGA in upward trend: 10-day moving average moved above 50-day moving average on October 13, 2026
The 10-day moving average for PEGA crossed bullishly above the 50-day moving average on October 13, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on PEGA as a result. In 60 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 71%.
The Moving Average Convergence Divergence (MACD) for PEGA just turned positive on October 15, 2026. Looking at past instances where PEGA's MACD turned positive, the stock continued to rise in 38 of 51 cases over the following month. The odds of a continued upward trend are 75%.
PEGA moved above its 50-day moving average on October 19, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +4.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where PEGA advanced for three days, in 215 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PEGA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
The Aroon Indicator for PEGA entered a downward trend on October 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 19 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. PEGA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.752) is normal, around the industry mean (-1.734). P/E Ratio (19.188) is within average values for comparable stocks, (15.183). Projected Growth (PEG Ratio) (2.989) is also within normal values, averaging (2.824). Dividend Yield (0.003) settles around the average of (0.074) among similar stocks. P/S Ratio (3.814) is also within normal values, averaging (71.128).
The Tickeron PE Growth Rating for this company is 91 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PEGA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
FRSH | PEGA | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 15 | 27 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 71 Overvalued | 82 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 47 | 19 | |
PRICE GROWTH RATING 1..100 | 35 | 47 | |
P/E GROWTH RATING 1..100 | 4 | 91 | |
SEASONALITY SCORE 1..100 | n/a | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
FRSH's Valuation (71) in the Restaurants industry is in the same range as PEGA (82) in the Information Technology Services industry. This means that FRSH’s stock grew similarly to PEGA’s over the last 12 months.
FRSH's Profit vs Risk Rating (100) in the Restaurants industry is in the same range as PEGA (100) in the Information Technology Services industry. This means that FRSH’s stock grew similarly to PEGA’s over the last 12 months.
PEGA's SMR Rating (19) in the Information Technology Services industry is in the same range as FRSH (47) in the Restaurants industry. This means that PEGA’s stock grew similarly to FRSH’s over the last 12 months.
FRSH's Price Growth Rating (35) in the Restaurants industry is in the same range as PEGA (47) in the Information Technology Services industry. This means that FRSH’s stock grew similarly to PEGA’s over the last 12 months.
FRSH's P/E Growth Rating (4) in the Restaurants industry is significantly better than the same rating for PEGA (91) in the Information Technology Services industry. This means that FRSH’s stock grew significantly faster than PEGA’s over the last 12 months.
| FRSH | PEGA | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 89% | N/A |
| Stochastic ODDS (%) | 1 day ago 85% | 1 day ago 77% |
| Momentum ODDS (%) | 1 day ago 81% | 1 day ago 71% |
| MACD ODDS (%) | 1 day ago 84% | 1 day ago 75% |
| TrendWeek ODDS (%) | 1 day ago 71% | 1 day ago 68% |
| TrendMonth ODDS (%) | 1 day ago 79% | 1 day ago 70% |
| Advances ODDS (%) | 3 days ago 71% | 3 days ago 68% |
| Declines ODDS (%) | 9 days ago 78% | 9 days ago 76% |
| BollingerBands ODDS (%) | 1 day ago 85% | N/A |
| Aroon ODDS (%) | 1 day ago 73% | 1 day ago 82% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
FRSH’s FA Score shows that 1 FA rating(s) are green while PEGA’s FA Score has 1 green FA rating(s).
- FRSH’s FA Score: 1 green, 4 red.
- PEGA’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
FRSH’s TA Score shows that 4 TA indicator(s) are bullish while PEGA’s TA Score has 5 bullish TA indicator(s).
- FRSH’s TA Score: 4 bullish, 4 bearish.
- PEGA’s TA Score: 5 bullish, 3 bearish.
Price Growth
FRSH (@Packaged Software) experienced а +7.51% price change this week, while PEGA (@Packaged Software) price change was +3.99% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -0.42%. For the same industry, the average monthly price growth was -3.95%, and the average quarterly price growth was +4.32%.
Reported Earning Dates
FRSH is expected to report earnings on Nov 03, 2026.
PEGA is expected to report earnings on Feb 17, 2027.
Industries' Descriptions
@Packaged Software (-0.42% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
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PEGA and
Correlation & Price change
A.I.dvisor indicates that over the last year, PEGA has been closely correlated with FRSH. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is a high statistical probability that if PEGA jumps, then FRSH could also see price increases.
| Ticker / NAME | Correlation To PEGA | 1D Price Change % | ||
|---|---|---|---|---|
| PEGA | 100% | +4.18% | ||
| FRSH - PEGA | 66% Closely correlated | +3.34% | ||
| VERX - PEGA | 65% Loosely correlated | +4.43% | ||
| SAP - PEGA | 64% Loosely correlated | +3.38% | ||
| NOW - PEGA | 63% Loosely correlated | +2.53% | ||
| PCOR - PEGA | 63% Loosely correlated | +2.27% | ||
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