Contrasting Qualys (QLYS) & Progress Software (PRGS)

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

Insider & Institutional Ownership

80.7% of Qualys shares are held by institutional investors. Comparatively, 96.6% of Progress Software shares are held by institutional investors. 18.6% of Qualys shares are held by insiders. Comparatively, 2.0% of Progress Software shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Qualys $230.83 million 14.49 $40.44 million $0.90 95.28
Progress Software $397.57 million 4.36 $37.41 million $1.72 22.37

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

Profitability

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

Net Margins Return on Equity Return on Assets
Qualys 12.04% 12.70% 8.19%
Progress Software 13.86% 26.14% 13.47%

Dividends

Progress Software pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Qualys does not pay a dividend. Progress Software pays out 32.6% of its earnings in the form of a dividend.

Volatility & Risk

Qualys has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Progress Software has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Qualys 0 7 7 0 2.50
Progress Software 0 2 2 0 2.50

Qualys currently has a consensus price target of $83.85, suggesting a potential downside of 2.22%. Progress Software has a consensus price target of $40.33, suggesting a potential upside of 4.82%. Given Progress Software’s higher possible upside, analysts plainly believe Progress Software is more favorable than Qualys.

Summary

Progress Software beats Qualys on 8 of the 15 factors compared between the two stocks.

Qualys Company Profile

Qualys, Inc. provides cloud-based security and compliance solutions in the United States and internationally. The company offers Qualys Cloud Apps, which includes Asset Inventory, CMDB Sync, Vulnerability Management, Continuous Monitoring, Cloud Agent, Threat Protection, Security Configuration Assessment, Indication of Compromise, Policy Compliance, PCI Compliance, Security Assessment Questionnaire, File Integrity Monitoring, Web Application Scanning, and Web Application Firewall. Its integrated suite of security and compliance solutions delivered on its Qualys Cloud Platform enables customers to identify IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions, and verify the implementation of such actions. The company also provides core services, including asset tagging and management, reporting and dashboards, questionnaires and collaboration, remediation and workflow, big data correlation and analytics engine, and alerts and notifications, which enable integrated workflows, management and real-time analysis, and reporting across IT security and compliance solutions. The company markets and sells its IT security and compliance solutions to customers directly through its sales teams, as well as indirectly through its network of channel partners, such as security consulting organizations, managed service providers and resellers, and consulting firms. It serves enterprises, government entities, and small and medium-sized businesses in various industries, including education, financial services, government, healthcare, insurance, manufacturing, media, retail, technology, and utilities. The company was founded in 1999 and is headquartered in Foster City, California.

Progress Software Company Profile

Progress Software Corp. engages in the provision of a platform, which develops and deploy mission-critical business applications. It operates through the following business segments: OpenEdge Business; Data Connectivity and Integration; and Application Development and Deployment. The OpenEdge Business segment provides product enhancements and marketing supports for the partners to sell more of its existing solutions to their customers. The Data Connectivity and Integration segment focuses on the growth of the data assets of the company, including its data integration components of the cloud offering. The Application Development and Deployment segment generates net new customers for the application development assets of the company. The company was founded by Joseph Wright Alsop, Clyde Kessel, and Charles Arthur Ziering in 1981 and is headquartered in Bedford, MA.

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