Progress Software (NASDAQ: PRGS) and CommerceHub (NASDAQ:CHUBK) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Institutional and Insider Ownership
94.3% of Progress Software shares are owned by institutional investors. Comparatively, 53.5% of CommerceHub shares are owned by institutional investors. 2.5% of Progress Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Progress Software and CommerceHub’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Progress Software and CommerceHub’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||4.79||$37.41 million||$0.77||53.31|
|CommerceHub||$111.12 million||8.81||$9.57 million||$0.22||102.32|
Progress Software has higher revenue and earnings than CommerceHub. Progress Software is trading at a lower price-to-earnings ratio than CommerceHub, indicating that it is currently the more affordable of the two stocks.
Progress Software pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. CommerceHub does not pay a dividend. Progress Software pays out 72.7% of its earnings in the form of a dividend.
Volatility and Risk
Progress Software has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, CommerceHub has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500.
This is a summary of current recommendations for Progress Software and CommerceHub, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Progress Software currently has a consensus target price of $39.50, suggesting a potential downside of 3.78%. Given Progress Software’s higher possible upside, equities research analysts clearly believe Progress Software is more favorable than CommerceHub.
Progress Software beats CommerceHub on 11 of the 14 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.
CommerceHub Company Profile
CommerceHub, Inc. is a provider of cloud-based e-commerce fulfillment and marketing solutions that integrate supply, demand and delivery for retailers and consumer brands, manufacturers and distributors. The Company’s end-to-end solutions are provided through the CommerceHub software platform, a hub that streamlines integration and enables transactions among its retailer and supplier customers and their other trading partners, while also enabling them to access the online marketplaces, search engines, social and product advertising and other digital marketing channels where consumers browse and buy. Its solutions also help its customers integrate with the third-party logistics (3PL) providers, including fulfillment and delivery providers that take purchased products to the consumer’s doorstep. The Company’s solutions include Supply Solutions, Demand Solutions and Delivery Solutions.
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