Contrasting Progress Software (NASDAQ:PRGS) and MTBC (NASDAQ:MTBCP)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Progress Software and MTBC, as provided by MarketBeat.com.

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

Progress Software presently has a consensus target price of $47.00, indicating a potential upside of 31.80%. Given Progress Software’s higher possible upside, research analysts clearly believe Progress Software is more favorable than MTBC.

Insider and Institutional Ownership

92.9% of Progress Software shares are owned by institutional investors. 1.8% of Progress Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Progress Software pays an annual dividend of $0.66 per share and has a dividend yield of 1.9%. MTBC pays an annual dividend of $2.75 per share and has a dividend yield of 10.7%. Progress Software pays out 28.8% of its earnings in the form of a dividend. Progress Software has raised its dividend for 3 consecutive years and MTBC has raised its dividend for 1 consecutive years.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Progress Software $413.30 million 3.86 $26.40 million $2.29 15.57
MTBC N/A N/A N/A N/A N/A

Progress Software has higher revenue and earnings than MTBC.

Profitability

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

Net Margins Return on Equity Return on Assets
Progress Software 10.81% 34.66% 13.08%
MTBC N/A N/A N/A

Summary

Progress Software beats MTBC on 9 of the 11 factors compared between the two stocks.

Progress Software Company Profile

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.

MTBC Company Profile

MTBC, Inc., a healthcare information technology (IT) company, provides an integrated suite of Web-based solutions and related business services to healthcare providers primarily in the United States. The company operates through two segments, Healthcare IT and Practice Management. It primarily offers PracticePro, a software-as-a-service platform, which includes practice management software and related tools that facilitate the day-to-day business operation and workflows; electronic health record (EHR), which enables customers to reduce paperwork; revenue cycle management services, such as end-to-end medical billing, analytics, and related services; and mobile health solutions, including smartphone applications that assist patients and healthcare providers in the provision of healthcare services. The company also provides a web-based EHR solution; healthcare claims clearinghouse services; transcription, coding, indexing, and other ancillary services; electronic data interchange services; talkEHR, a voice enabled EHR solution; business intelligence, customized applications, interfaces, and various other technology solutions; comprehensive practice management services; telemedicine services; and patient experience management solutions. It serves physicians, nurses, nurse practitioners, physician assistants, and other clinical staff that render bills for their services. The company was formerly known as Medical Transcription Billing, Corp. and changed its name to MTBC, Inc. in February 2019. MTBC, Inc. was founded in 1999 and is headquartered in Somerset, New Jersey.

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