Progress Software (NASDAQ: PRGS) and CounterPath (NASDAQ:CPAH) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Risk & Volatility
Progress Software has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, CounterPath has a beta of -0.73, indicating that its stock price is 173% less volatile than the S&P 500.
This table compares Progress Software and CounterPath’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Progress Software pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. CounterPath does not pay a dividend. Progress Software pays out 72.7% of its earnings in the form of a dividend.
This is a breakdown of recent ratings for Progress Software and CounterPath, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Progress Software presently has a consensus price target of $39.50, suggesting a potential downside of 22.08%. Given Progress Software’s higher probable upside, research analysts clearly believe Progress Software is more favorable than CounterPath.
Institutional and Insider Ownership
93.6% of Progress Software shares are held by institutional investors. Comparatively, 5.4% of CounterPath shares are held by institutional investors. 2.5% of Progress Software shares are held by insiders. Comparatively, 38.3% of CounterPath shares are held 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.
Valuation & Earnings
This table compares Progress Software and CounterPath’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Progress Software||$397.57 million||6.10||-$55.72 million||$0.77||65.83|
|CounterPath||$10.69 million||3.43||-$2.45 million||($0.51)||-13.06|
CounterPath has lower revenue, but higher earnings than Progress Software. CounterPath is trading at a lower price-to-earnings ratio than Progress Software, indicating that it is currently the more affordable of the two stocks.
Progress Software beats CounterPath on 12 of the 15 factors compared between the two stocks.
Progress Software 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.
CounterPath Company Profile
CounterPath Corporation designs, develops and sells software and services that enable enterprises and telecommunication service providers to deliver unified communications (UC) services, including voice, video, messaging and collaboration functionality, over their Internet Protocol (IP)-based networks. The Company’s solutions range from software products to cloud-based services. Its software products include applications for smartphones, tablets and desktop computers, a Software Development Kit (SDK) for software developers seeking to add voice, video and messaging capabilities to their existing applications, and server-based software solutions for configuring, managing and supporting softphones and for deploying messaging and collaboration services. These software products are also available to customers in the form of cloud-based hosted services. The Company is focused on selling its software products to enterprises, telecommunication service providers and channel partners.
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