Progress Software (NASDAQ:PRGS – Get Free Report) and OptimizeRx (NASDAQ:OPRX – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Valuation and Earnings
This table compares Progress Software and OptimizeRx”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Progress Software | $753.41 million | 2.50 | $68.44 million | $1.10 | 39.95 |
| OptimizeRx | $109.51 million | 2.24 | -$18.66 million | N/A | N/A |
Profitability
This table compares Progress Software and OptimizeRx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Progress Software | 5.16% | 43.68% | 8.01% |
| OptimizeRx | 0.03% | 6.37% | 4.46% |
Institutional & Insider Ownership
76.5% of OptimizeRx shares are held by institutional investors. 3.6% of Progress Software shares are held by insiders. Comparatively, 5.6% of OptimizeRx shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Progress Software and OptimizeRx, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Progress Software | 1 | 1 | 4 | 0 | 2.50 |
| OptimizeRx | 1 | 2 | 7 | 1 | 2.73 |
Progress Software currently has a consensus price target of $68.00, suggesting a potential upside of 54.76%. OptimizeRx has a consensus price target of $16.88, suggesting a potential upside of 28.03%. Given Progress Software’s higher possible upside, research analysts clearly believe Progress Software is more favorable than OptimizeRx.
Risk & Volatility
Progress Software has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.
Summary
Progress Software beats OptimizeRx on 8 of the 14 factors compared between the two stocks.
About Progress Software
Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers. It also provides MOVEit, a managed file transfer software for managing and controlling the movement of sensitive files and securing them both at-rest and in-transit; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data and SaaS data sources; WhatsUp Gold, a network infrastructure monitoring software providing complete visibility of all network devices, servers, virtual machines, and cloud and wireless environments to find and fix network problems; Flowmon, a network security and visibility product with automated response across hybrid cloud ecosystems; Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules; MarkLogic, a data agility platform to connect data and metadata; and Semaphore, a Semantic AI platform. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications; and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.
About OptimizeRx
OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.
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