Reviewing Dropbox (DBX) and Progress Software (PRGS)

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Progress Software $397.57 million 4.51 $37.41 million $1.72 22.92
Dropbox N/A N/A N/A N/A N/A

Progress Software has higher revenue and earnings than Dropbox.

Insider & Institutional Ownership

94.0% of Progress Software shares are owned by institutional investors. Comparatively, 13.9% of Dropbox shares are owned by institutional investors. 2.0% of Progress Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Progress Software 12.69% 23.37% 12.30%
Dropbox N/A N/A N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Progress Software and Dropbox, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Progress Software 1 1 1 0 2.00
Dropbox 1 4 8 0 2.54

Progress Software presently has a consensus price target of $44.50, suggesting a potential upside of 12.86%. Dropbox has a consensus price target of $33.46, suggesting a potential downside of 1.15%. Given Progress Software’s higher possible upside, equities research analysts plainly believe Progress Software is more favorable than Dropbox.

Dividends

Progress Software pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. Dropbox does not pay a dividend. Progress Software pays out 32.6% of its earnings in the form of a dividend.

Summary

Progress Software beats Dropbox on 8 of the 11 factors compared between the two stocks.

About Progress Software

Progress Software Corporation provides software solutions for various industries worldwide. It operates through 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; DataRPM, which provides maintenance solutions for industrial IoT; and Kinvey that offers cloud backend as a service technology. 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; NativeScript, an open-source application development platform; Test Studio, an application lifecycle management suite for testing Web, mobile, and desktop applications; and Sitefinity, a Web content management and customer analytics platform. 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.

About Dropbox

Dropbox Inc. provides a collaboration platform worldwide. Its platform allows individuals, teams, and organizations to create, access, and share content online. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox Inc. was founded in 2007 and is headquartered in San Francisco, California.

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