Financial Analysis: Dassault Systemes (OTCMKTS:DASTY) versus Progress Software (NASDAQ:PRGS)

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

Volatility & Risk

Progress Software has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Dassault Systemes has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Progress Software and Dassault Systemes, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progress Software	1	1	4	0	2.50
Dassault Systemes	0	1	0	2	3.33

Progress Software currently has a consensus price target of $68.00, indicating a potential upside of 65.57%. Given Progress Software’s higher probable upside, analysts clearly believe Progress Software is more favorable than Dassault Systemes.

Profitability

This table compares Progress Software and Dassault Systemes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Progress Software	5.16%	43.68%	8.01%
Dassault Systemes	18.52%	17.18%	9.98%

Dividends

Progress Software pays an annual dividend of $0.70 per share and has a dividend yield of 1.7%. Dassault Systemes pays an annual dividend of $0.22 per share and has a dividend yield of 0.8%. Progress Software pays out 63.6% of its earnings in the form of a dividend. Dassault Systemes pays out 23.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider and Institutional Ownership

0.0% of Dassault Systemes shares are owned by institutional investors. 3.4% of Progress Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Progress Software and Dassault Systemes”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progress Software	$940.13 million	1.87	$68.44 million	$1.10	37.34
Dassault Systemes	$6.72 billion	5.47	$1.30 billion	$0.95	28.88

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

Summary

Dassault Systemes beats Progress Software on 10 of the 17 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 Dassault Systemes

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.