Financial Survey: ANSYS (NASDAQ:ANSS) and Progress Software (NASDAQ:PRGS)

ANSYS (NASDAQ:ANSS) and Progress Software (NASDAQ:PRGS) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ANSYS and Progress Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ANSYS 0 4 7 0 2.64
Progress Software 0 0 4 0 3.00

ANSYS currently has a consensus price target of $222.33, suggesting a potential downside of 3.42%. Progress Software has a consensus price target of $51.00, suggesting a potential upside of 22.04%. Given Progress Software’s stronger consensus rating and higher probable upside, analysts plainly believe Progress Software is more favorable than ANSYS.

Valuation and Earnings

This table compares ANSYS and Progress Software’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ANSYS $1.29 billion 14.98 $419.38 million $5.21 44.19
Progress Software $397.17 million 4.71 $63.49 million $2.13 19.62

ANSYS has higher revenue and earnings than Progress Software. Progress Software is trading at a lower price-to-earnings ratio than ANSYS, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

94.0% of ANSYS shares are owned by institutional investors. Comparatively, 92.6% of Progress Software shares are owned by institutional investors. 1.1% of ANSYS shares are owned by company insiders. Comparatively, 1.7% of Progress Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

ANSYS has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Progress Software has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Profitability

This table compares ANSYS and Progress Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ANSYS 30.35% 16.65% 13.43%
Progress Software 12.16% 32.10% 13.78%

Dividends

Progress Software pays an annual dividend of $0.62 per share and has a dividend yield of 1.5%. ANSYS does not pay a dividend. Progress Software pays out 29.1% of its earnings in the form of a dividend.

Summary

ANSYS beats Progress Software on 10 of the 16 factors compared between the two stocks.

ANSYS Company Profile

ANSYS, Inc. develops and markets engineering simulation software and services worldwide. The company offers ANSYS Workbench, a framework upon which the company's engineering simulation technologies are built; ANSYS multiphysics software to simulate the interactions between structures, heat transfer, fluids, and electronics in a unified engineering simulation environment; and structural analysis product suite that provides simulation tools for product design and optimization. It also provides fluids product suite that enables modeling of fluid flow and other related physical phenomena; and electromagnetics product suite, which provides field simulation software for designing electronic. In addition, the company offers power analysis and optimization software suite that manages the power budget, power delivery integrity, and power-induced noise in an electronic design; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; system simulation capability for the design of automated products; and high-performance computing product suite, which delivers cross-physics parallel processing capabilities for simulation software. Further, it provides Discovery product family for use in the simulation of product design; academic product suite with a portfolio of academic products based on associate, research, and teaching; ANSYS Fluent that enhance workflow process; and ANSYS medini analyze, a suite for functional safety analysis. The company serves engineers, designers, researchers, and students in the aerospace and defense, automotive, electronics, semiconductors, energy, materials and chemical processing, turbomachinery, consumer products, healthcare, and sports industries and academia. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

Progress Software Company Profile

Progress Software Corporation develops business applications worldwide. The company operates in three segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. The OpenEdge segment offers Progress OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well as cloud; Progress Corticon, a business rules management system that enables applications with decision automation and change process, and decision-related insight capabilities; Progress Kinvey, a platform for building enterprise applications; NativeScript, an open-source application development platform; and DataRPM, a cognitive predictive maintenance solution for industrial IoT. The Data Connectivity and Integration segment provides Progress DataDirect Connect software, which offers data connectivity using industry-standard interfaces to connect applications running on various platforms; and Progress DataDirect Hybrid Data Pipeline, a data access service that provides cloud and on-premises data sources for hybrid cloud applications, such as CRM, data management platforms, and hosted analytics. The Application Development and Deployment segment offers Dev Tools, a cross-platform, user experience design, quality assurance, debugging, and reporting suite; Sitefinity, a Web content management and customer analytics platform; and Test Studio, an application lifecycle management suite for testing Web, mobile, and desktop applications. The company also provides project management, implementation, custom development, programming, and other services, as well as services to Web-enable applications; and training services. It sells its products directly to end users, as well as indirectly to application partners, original equipment manufacturers, and system integrators. Progress Software Corporation was founded in 1981 and is headquartered in Bedford, Massachusetts.

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