Financial Review: PROS (PRO) versus Sogou (SOGO)

PROS (NYSE:PRO) and Sogou (NYSE:SOGO) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

99.4% of PROS shares are owned by institutional investors. Comparatively, 7.4% of Sogou shares are owned by institutional investors. 15.4% of PROS shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for PROS and Sogou, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PROS 0 1 5 1 3.00
Sogou 0 3 0 0 2.00

PROS currently has a consensus target price of $42.00, suggesting a potential upside of 29.51%. Sogou has a consensus target price of $11.10, suggesting a potential upside of 89.10%. Given Sogou’s higher probable upside, analysts clearly believe Sogou is more favorable than PROS.

Profitability

This table compares PROS and Sogou’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PROS -35.89% N/A -13.10%
Sogou 7.96% 13.07% 8.90%

Volatility & Risk

PROS has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Sogou has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Earnings and Valuation

This table compares PROS and Sogou’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PROS $168.82 million 7.14 -$77.92 million ($1.53) -21.20
Sogou $908.36 million 2.57 $82.20 million $0.29 20.24

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

Summary

Sogou beats PROS on 8 of the 15 factors compared between the two stocks.

About PROS

PROS Holdings, Inc., a cloud software company, provides solutions for companies to price, configure, and sell their products and services to their customers. The company offers SellingPRO solutions, which include configuration, quoting, and e-commerce capabilities with data science; and PricingPRO solutions that deliver insight into pricing practices and provides pricing recommendations, as well as enhances control over pricing execution. It also provides RevenuePRO solutions that offer a set of integrated software solutions that enable enterprises in the travel industry, including the airline, hotel, and cruise industries to drive revenue and profit-maximizing business strategies through the application of forecasting, optimization technologies, and decision-support capabilities consisting of RevenuePRO Passenger Revenue Management, RevenuePRO Group Sales Optimizer, RevenuePRO Real-Time Dynamic Pricing, RevenuePRO Shopping, and RevenuePRO Merchandising. In addition, the company offers implementation and configuration, consulting, training, and maintenance and support; and strategic services, including discovery and insight consulting services, as well as software-as-a-service and cloud-based services. It serves manufacturing, distribution, and services industries, including automotive and industrial, B2B services, cargo, chemicals and energy, consumer goods, insurance, food and beverage, healthcare, high tech, and travel industries in the United States, Europe, and internationally. The company markets and sells its software solutions primarily through its direct global sales force, as well as indirectly through resellers and systems integrators. PROS Holdings, Inc. was founded in 1985 and is headquartered in Houston, Texas.

About Sogou

Sogou Inc. provides search and search-related services in the People's Republic of China. The company provides Sogou Search, a search engine; and Sogou Input Method, a Chinese language input software for mobile and PC MAUs. It also offers search and search-related advertising services; Internet value-added services related to the operation of Web games and mobile games developed by third parties; and online reading services, as well as other products and services, including smart hardware products. The company was incorporated in 2005 and is based in Beijing, the People's Republic of China. Sogou Inc. is a subsidiary of Sohu.com Inc.

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