Medidata Solutions (NASDAQ:MDSO) and Progress Software (NASDAQ:PRGS) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, earnings, profitability, analyst recommendations, risk and valuation.

Valuation & Earnings

This table compares Medidata Solutions and Progress Software’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medidata Solutions $635.70 million 8.91 $51.92 million $0.96 94.75
Progress Software $397.17 million 4.70 $63.49 million $2.13 19.61

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

Profitability

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

Net Margins Return on Equity Return on Assets
Medidata Solutions 7.99% 9.28% 5.79%
Progress Software 13.30% 30.71% 14.02%

Dividends

Progress Software pays an annual dividend of $0.62 per share and has a dividend yield of 1.5%. Medidata Solutions does not pay a dividend. Progress Software pays out 29.1% of its earnings in the form of a dividend. Progress Software has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Medidata Solutions and Progress Software, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medidata Solutions 0 10 1 0 2.09
Progress Software 0 1 1 0 2.50

Medidata Solutions presently has a consensus price target of $84.38, suggesting a potential downside of 7.23%. Progress Software has a consensus price target of $47.00, suggesting a potential upside of 12.52%. Given Progress Software’s stronger consensus rating and higher possible upside, analysts clearly believe Progress Software is more favorable than Medidata Solutions.

Insider & Institutional Ownership

91.4% of Progress Software shares are held by institutional investors. 4.7% of Medidata Solutions shares are held by company insiders. Comparatively, 1.7% of Progress Software shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Medidata Solutions has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Progress Software has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Summary

Progress Software beats Medidata Solutions on 10 of the 16 factors compared between the two stocks.

Medidata Solutions Company Profile

Medidata Solutions, Inc. provides cloud-based solutions for life sciences worldwide. It offers the Medidata Clinical Cloud, a platform, pioneering analytics, and clinical technology for the development and commercialization of new therapies. The company's platform solutions include data capture and management, and trial planning and management. It also provides professional services, such as implementation, sponsor enablement, strategic consulting, partner support, and e-learning and training. The company markets and sells its cloud-based solutions through a direct sales force and through relationships with channel and strategic partners. It serves pharmaceutical, biotechnology, medical device, and diagnostics companies; academic research centers, government, and other non-profit organizations; and other non-profit organizations; and contract research organizations and other entities engaged in clinical trials. The company was founded in 1999 and is headquartered in New York, New York.

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.

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