Head to Head Survey: Progress Software (PRGS) & CounterPath (CPAH)

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progress Software 0 1 1 0 2.50
CounterPath 0 0 0 0 N/A

Progress Software presently has a consensus price target of $39.50, indicating a potential downside of 9.42%. Given Progress Software’s higher possible upside, analysts clearly believe Progress Software is more favorable than CounterPath.

Dividends

Progress Software pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. CounterPath does not pay a dividend. Progress Software pays out -51.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

93.6% of Progress Software shares are owned by institutional investors. Comparatively, 5.4% of CounterPath shares are owned by institutional investors. 2.5% of Progress Software shares are owned by company insiders. Comparatively, 38.3% of CounterPath 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.

Profitability

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 -13.23% 20.30% 10.82%
CounterPath -22.08% -27.03% -17.95%

Volatility & Risk

Progress Software has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, CounterPath has a beta of -0.73, suggesting that its share price is 173% less volatile than the S&P 500.

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 $405.34 million 5.14 -$55.72 million ($1.08) -40.38
CounterPath $10.69 million 2.14 -$2.45 million ($0.51) -8.14

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

Summary

Progress Software beats CounterPath on 11 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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