Critical Analysis: Mobivity (OTCMKTS:MFON) and Progress Software (OTCMKTS:PRGS)

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

Risk & Volatility

Mobivity has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500. Comparatively, Progress Software has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Insider and Institutional Ownership

91.2% of Progress Software shares are held by institutional investors. 21.1% of Mobivity shares are held by insiders. Comparatively, 1.7% of Progress Software shares are held by 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.

Earnings and Valuation

This table compares Mobivity and Progress Software’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mobivity $11.56 million 3.98 -$7.22 million N/A N/A
Progress Software $397.17 million 4.29 $63.49 million $2.13 17.88

Progress Software has higher revenue and earnings than Mobivity.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mobivity and Progress Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mobivity 0 0 0 0 N/A
Progress Software 0 0 3 0 3.00

Progress Software has a consensus target price of $50.33, indicating a potential upside of 32.14%. Given Progress Software’s higher possible upside, analysts clearly believe Progress Software is more favorable than Mobivity.

Profitability

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

Net Margins Return on Equity Return on Assets
Mobivity -73.28% -423.75% -59.34%
Progress Software 13.30% 30.71% 14.02%

Dividends

Progress Software pays an annual dividend of $0.62 per share and has a dividend yield of 1.6%. Mobivity does not pay a dividend. Progress Software pays out 29.1% of its earnings in the form of a dividend. Progress Software has raised its dividend for 2 consecutive years.

Summary

Progress Software beats Mobivity on 12 of the 14 factors compared between the two stocks.

About Mobivity

Mobivity Holdings Corp. develops and operates proprietary platforms to conduct national and localized, and data-driven marketing campaigns in the United States. Its platforms consist of software for phones, tablets, PCs, and point-of-sale systems, which enable resellers, brands, and enterprises to market their products and services to consumers through text messages sent directly to the consumers via mobile phones, mobile smartphone applications, and dynamically printed receipt content. The company captures transaction details, analyzes the data, and motivates customers and employees to take actions that enhance business performance through its re•currency platform. Its re•currency platform that unlocks POS and mobile data to help transforming customer transactions into actionable and attributable marketing insights, including re•capture, which captures, normalizes, integrates, and stores transaction data for any POS system; re•cognition that consist of various reporting and analytics tools to uncover patterns in the buying behaviors of consumers; re•ceipt, which unlocks the power of transactional data to create relevant and timely customer messages; re•ach that transforms standard SMS messaging into a data-driven marketing medium; and re•up, which aids marketing to align focusing its attention on engaging the customer and trying to change their buying behavior. The company markets and sells its services through direct sales, resellers, and agents, as well as online. The company is headquartered in Chandler, Arizona.

About Progress Software

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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