Progress Software Corporation (NASDAQ: PRGS) is one of 118 publicly-traded companies in the “Software” industry, but how does it compare to its peers? We will compare Progress Software Corporation to similar businesses based on the strength of its risk, institutional ownership, profitability, dividends, earnings, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Progress Software Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progress Software Corporation 0 4 1 0 2.20
Progress Software Corporation Competitors 259 1987 4250 84 2.63

Progress Software Corporation currently has a consensus price target of $36.00, suggesting a potential downside of 10.07%. As a group, “Software” companies have a potential upside of 6.43%. Given Progress Software Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Progress Software Corporation has less favorable growth aspects than its peers.

Dividends

Progress Software Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Progress Software Corporation pays out -45.9% of its earnings in the form of a dividend. As a group, “Software” companies pay a dividend yield of 1.1% and pay out 62.6% of their earnings in the form of a dividend. Progress Software Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

91.3% of Progress Software Corporation shares are held by institutional investors. Comparatively, 58.4% of shares of all “Software” companies are held by institutional investors. 2.5% of Progress Software Corporation shares are held by company insiders. Comparatively, 20.0% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Progress Software Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Progress Software Corporation -13.23% 20.30% 10.82%
Progress Software Corporation Competitors -42.00% -25.20% -9.91%

Earnings and Valuation

This table compares Progress Software Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Progress Software Corporation $399.22 million $133.41 million -36.72
Progress Software Corporation Competitors $1.52 billion $446.91 million 41.83

Progress Software Corporation’s peers have higher revenue and earnings than Progress Software Corporation. Progress Software Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Progress Software Corporation has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Progress Software Corporation’s peers have a beta of 0.98, indicating that their average stock price is 2% less volatile than the S&P 500.

Summary

Progress Software Corporation peers beat Progress Software Corporation on 8 of the 14 factors compared.

About Progress Software Corporation

Progress Software Corporation is engaged in application development. The Company operates through three segments: OpenEdge, Data Connectivity and Integration (DCI), and Application Development and Deployment (AppDev). The OpenEdge business segment provides the product enhancements and marketing support to its partner base. It is also focused on providing partners and direct end users with a path to develop and integrate cloud-based applications. Its solutions include Progress OpenEdge and Progress Corticon. The DCI segment is focused on its data assets, including the data integration components of its cloud offerings. Its solutions include Progress DataDirect Connect and Progress DataDirect Cloud. The AppDev business segment is focused on generating customers for its application development assets. Its solutions include Dev Tools, NativeScript, Dev Cloud, Telerik Platform, Test Studio, Sitefinity and Progress Rollbase. Its offerings span Web, mobile and data.

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