NextNav Inc. (NN) vs Progress Software Corporation (PRGS)

NextNav Inc. and Progress Software Corporation are both Software Infrastructure companies. Progress Software Corporation is the larger, with a market value of $1.8B against $1.4B — 1.3× the size. NextNav Inc. has negative trailing earnings, so its P/E is not meaningful; Progress Software Corporation trades at 20.3×. Progress Software Corporation grew revenue faster over the last twelve months: 6.36% against −36.5%. Progress Software Corporation has the higher net margin (9.24% vs −2,812.6%) and the higher return on invested capital (6.69% vs −44.7%). Across the 19 metrics below, Progress Software Corporation leads on 13 and NextNav Inc. on 6.

Valuation

Metric NN PRGS Software Infrastructure median
P/E n/m 20.35 24.43
P/S 286.32 1.83 2.81
P/B 3.40 3.45 2.88
Price to free cash flow n/m 5.73 17.94
EV/EBITDA n/m 9.03 14.51
EV/Sales 295.96 2.96 2.91
Earnings yield (10.03%) 4.91% 0.00%
Free cash flow yield (4.71%) 17.44% 0.49%

Profitability

Metric NN PRGS Software Infrastructure median
Gross margin (104.90%) 82.23% 57.45%
Operating margin (1,900.43%) 17.66% 0.00%
Net margin (2,812.55%) 9.24% 0.00%
Free cash flow margin (1,348.00%) 31.92% 0.00%
Return on equity (77.87%) 18.34% 0.00%
Return on assets (34.64%) 3.91% 0.00%
Return on invested capital (44.71%) 6.69% 0.00%

Growth

Metric NN PRGS Software Infrastructure median
Revenue growth (TTM) (36.46%) 6.36% 14.28%
EPS growth (last fiscal year) (69.05%) 7.79% 18.26%
Revenue growth, 5-year CAGR 51.71% 17.20% 16.15%
Net income growth, 5-year CAGR 0.00% (1.71%) 0.00%

Health

Metric NN PRGS Software Infrastructure median
Debt to equity 0.00 2.33 0.02
Current ratio 25.63 0.80 1.53
Net debt to EBITDA (2.30) 3.04 0.05

Dividend

Metric NN PRGS Software Infrastructure median
Dividend yield — 0.00% 1.06%
Payout ratio — 0.00 0.29

Size

Metric NN PRGS Software Infrastructure median
Market cap 1.36b 1.82b 661.51m

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