Critical Analysis: Progress Software (NASDAQ:PRGS) and My Size (NASDAQ:MYSZ)

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

Analyst Recommendations

This is a breakdown of current ratings for Progress Software and My Size, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Progress Software	0	1	5	0	2.83
My Size	0	0	1	0	3.00

Progress Software currently has a consensus target price of $63.50, suggesting a potential upside of 10.15%. My Size has a consensus target price of $5.00, suggesting a potential upside of 201.20%. Given My Size’s stronger consensus rating and higher probable upside, analysts clearly believe My Size is more favorable than Progress Software.

Insider & Institutional Ownership

27.7% of My Size shares are owned by institutional investors. 3.4% of Progress Software shares are owned by insiders. Comparatively, 5.8% of My Size shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Progress Software has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, My Size has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Progress Software	10.29%	36.88%	10.30%
My Size	-44.38%	-77.26%	-44.56%

Earnings and Valuation

This table compares Progress Software and My Size’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Progress Software	$694.44 million	3.55	$70.20 million	$1.64	35.15
My Size	$9.95 million	0.11	-$6.38 million	($22.28)	-0.07

Progress Software has higher revenue and earnings than My Size. My Size 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

Progress Software beats My Size on 9 of the 13 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 My Size

My Size, Inc., an omnichannel e-commerce platform, provides AI-driven apparel sizing and digital solutions for online shopping and physical stores in Israel. The company operates through three segments: Fashion and Equipment E-Commerce Platform; SaaS Solutions; and Naiz. It offers MySizeID, an application that enables consumers to create an online profile of their personal measurements to get the right fit; BoxSize, a parcel measurement application that allows consumers to measure the size of their parcel with their smartphone, calculate shipping costs, and arrange for a convenient pick-up time for the package; and SizeUp, a digital tape measure that allows users to measure length, width, and height of a surface by moving their smartphone from point to point of an object or space. The company also operates a fashion and equipment e-commerce platform; and offers SaaS based artificial intelligence measurement solutions. The company was formerly known as Knowledgetree Ventures, Inc. and changed its name to My Size, Inc. in January 2014. My Size, Inc. was incorporated in 1999 and is headquartered in Airport City, Israel.