Progress Software Corporation (NASDAQ: PRGS) and Smith Micro Software (NASDAQ:SMSI) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
93.1% of Progress Software Corporation shares are owned by institutional investors. Comparatively, 14.0% of Smith Micro Software shares are owned by institutional investors. 2.5% of Progress Software Corporation shares are owned by insiders. Comparatively, 22.0% of Smith Micro Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Progress Software Corporation has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Smith Micro Software has a beta of 0.03, suggesting that its share price is 97% less volatile than the S&P 500.
Progress Software Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 1.2%. Smith Micro Software does not pay a dividend. Progress Software Corporation pays out -45.9% of its earnings in the form of a dividend.
This is a summary of recent ratings and recommmendations for Progress Software Corporation and Smith Micro Software, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Progress Software Corporation||0||3||1||0||2.25|
|Smith Micro Software||0||0||0||0||N/A|
Progress Software Corporation currently has a consensus price target of $36.00, suggesting a potential downside of 14.59%. Given Progress Software Corporation’s higher possible upside, analysts plainly believe Progress Software Corporation is more favorable than Smith Micro Software.
Valuation & Earnings
This table compares Progress Software Corporation and Smith Micro Software’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Progress Software Corporation||$405.34 million||4.97||-$55.72 million||($1.09)||-38.67|
|Smith Micro Software||$28.24 million||0.93||-$14.51 million||($0.76)||-2.41|
Smith Micro Software has higher revenue, but lower earnings than Progress Software Corporation. Progress Software Corporation is trading at a lower price-to-earnings ratio than Smith Micro Software, indicating that it is currently the more affordable of the two stocks.
This table compares Progress Software Corporation and Smith Micro Software’s 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%|
|Smith Micro Software||-39.83%||-450.58%||-38.59%|
Progress Software Corporation beats Smith Micro Software on 11 of the 14 factors compared between the two stocks.
Progress Software Corporation Company Profile
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.
Smith Micro Software Company Profile
Smith Micro Software, Inc. is a provider of software solutions. The Company operates through two segments: Wireless and Graphics. The Company offers multi-platform, modular solutions organized into three product families, including NetWise, CommSuite and QuickLink. For mobile network operators, NetWise helps reduce cellular congestion and optimize data traffic across third-generation (3G), fourth-generation (4G) and wireless fidelity (Wi-Fi) networks. Graphics segment includes its consumer-based products, such as Poser, Anime Studio, Manga Studio, MotionArtist and StuffIt. The Graphics segment develops a range of software, including graphic design and animation, compression and personal computer (PC)/Mac utilities, for consumers, professional artists and educators. The Company also offers Family Safety platform for family locator and parental controls.
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