A10 Networks, Inc. (ATEN) vs Progress Software Corporation (PRGS)

A10 Networks, Inc. and Progress Software Corporation are both Software Infrastructure companies. A10 Networks, Inc. is the larger, with a market value of $1.8B against $1.7B — 1.1× the size. Progress Software Corporation trades at the lower P/E: 18.6× against 40.8×. A10 Networks, Inc. grew revenue faster over the last twelve months: 12.2% against 6.36%. A10 Networks, Inc. has the higher net margin (13.9% vs 9.24%) and the higher return on invested capital (31.3% vs 6.69%). Only A10 Networks, Inc. pays a dividend (0.98%). Across the 23 metrics below, Progress Software Corporation leads on 13 and A10 Networks, Inc. on 10.

Valuation

Metric ATEN PRGS Software Infrastructure median
P/E 40.77 18.61 28.38
P/S 5.69 1.68 2.98
P/B 7.42 3.16 2.93
Price to free cash flow 28.97 5.25 16.28
EV/EBITDA 27.86 8.56 13.92
EV/Sales 5.95 2.81 2.90
Earnings yield 2.45% 5.37% 0.14%
Free cash flow yield 3.45% 19.03% 1.24%

Profitability

Metric ATEN PRGS Software Infrastructure median
Gross margin 79.38% 82.23% 61.00%
Operating margin 16.14% 17.66% 0.00%
Net margin 13.85% 9.24% 0.00%
Free cash flow margin 19.65% 31.92% 1.67%
Return on equity 19.45% 18.34% 0.60%
Return on assets 6.68% 3.91% 0.00%
Return on invested capital 31.25% 6.69% 0.00%

Growth

Metric ATEN PRGS Software Infrastructure median
Revenue growth (TTM) 12.20% 6.36% 13.41%
EPS growth (last fiscal year) (14.93%) 7.79% 27.10%
Revenue growth, 5-year CAGR 5.20% 17.20% 15.57%
Net income growth, 5-year CAGR 18.79% (1.71%) 0.00%

Health

Metric ATEN PRGS Software Infrastructure median
Debt to equity 0.92 2.33 0.05
Current ratio 1.29 0.80 1.55
Net debt to EBITDA (2.57) 3.04 0.08

Dividend

Metric ATEN PRGS Software Infrastructure median
Dividend yield 0.98% 0.00% 1.20%
Payout ratio 0.40 0.00 0.29

Size

Metric ATEN PRGS Software Infrastructure median
Market cap 1.84b 1.67b 752.37m

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