Progress Software (NASDAQ:PRGS) versus Verint Systems (NASDAQ:VRNT) Head-To-Head Contrast

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

Profitability

This table compares Progress Software and Verint Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Progress Software	6.63%	43.72%	8.47%
Verint Systems	6.87%	11.06%	4.37%

Earnings and Valuation

This table compares Progress Software and Verint Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progress Software	$753.41 million	2.53	$68.44 million	$1.31	33.73
Verint Systems	$909.19 million	1.35	$82.27 million	$0.82	24.83

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progress Software	0	2	4	0	2.67
Verint Systems	0	7	1	0	2.13

Progress Software currently has a consensus target price of $73.33, indicating a potential upside of 65.99%. Verint Systems has a consensus target price of $26.33, indicating a potential upside of 29.34%. Given Progress Software’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Progress Software is more favorable than Verint Systems.

Institutional and Insider Ownership

95.0% of Verint Systems shares are owned by institutional investors. 3.4% of Progress Software shares are owned by insiders. Comparatively, 1.3% of Verint Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Progress Software has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Verint Systems has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Summary

Progress Software beats Verint Systems on 9 of the 14 factors compared between the two stocks.

About Progress Software

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers. It also provides MOVEit, a managed file transfer software for managing and controlling the movement of sensitive files and securing them both at-rest and in-transit; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data and SaaS data sources; WhatsUp Gold, a network infrastructure monitoring software providing complete visibility of all network devices, servers, virtual machines, and cloud and wireless environments to find and fix network problems; Flowmon, a network security and visibility product with automated response across hybrid cloud ecosystems; Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules; MarkLogic, a data agility platform to connect data and metadata; and Semaphore, a Semantic AI platform. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications; and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.

About Verint Systems

Verint Systems Inc. provides customer engagement solutions worldwide. It offers forecasting and scheduling, channels and routing, knowledge management, fraud and security solutions, quality and compliance, analytics and insights, real-time assistance, self-services, financial compliance, and voice pf the consumer solutions. The company provides Verint Open platform designed to help brands increase CX automation across all touchpoints between organization and customers in the contact center, back office, branch, web sites, and mobile apps. It serves banking, insurance, public, retail, and telecommunication industries. Verint Systems Inc. was incorporated in 1994 and is headquartered in Melville, New York.