Pagaya Technologies Ltd. (PGY) vs Progress Software Corporation (PRGS)

Pagaya Technologies Ltd. and Progress Software Corporation are both Software Infrastructure companies. Progress Software Corporation is the larger, with a market value of $1.7B against $1.5B — 1.1× the size. Pagaya Technologies Ltd. trades at the lower P/E: 11.5× against 18.6×. Pagaya Technologies Ltd. grew revenue faster over the last twelve months: 20.6% against 6.36%. Progress Software Corporation has the higher net margin (9.24% vs 9.11%) and the lower return on invested capital (6.69% vs 741.9%). Across the 22 metrics below, Pagaya Technologies Ltd. leads on 17 and Progress Software Corporation on 5.

Valuation

Metric PGY PRGS Software Infrastructure median
P/E 11.49 18.61 28.38
P/S 1.03 1.68 2.98
P/B 2.21 3.16 2.93
Price to free cash flow 5.69 5.25 16.28
EV/EBITDA 2.66 8.56 13.92
EV/Sales 0.72 2.81 2.90
Earnings yield 8.71% 5.37% 0.14%
Free cash flow yield 17.57% 19.03% 1.24%

Profitability

Metric PGY PRGS Software Infrastructure median
Gross margin 43.39% 82.23% 61.00%
Operating margin 24.86% 17.66% 0.00%
Net margin 9.11% 9.24% 0.00%
Free cash flow margin 18.11% 31.92% 1.67%
Return on equity 22.68% 18.34% 0.60%
Return on assets 8.19% 3.91% 0.00%
Return on invested capital 741.93% 6.69% 0.00%

Growth

Metric PGY PRGS Software Infrastructure median
Revenue growth (TTM) 20.55% 6.36% 13.41%
EPS growth (last fiscal year) 116.43% 7.79% 27.10%
Revenue growth, 5-year CAGR 67.40% 17.20% 15.57%
Net income growth, 5-year CAGR 75.33% (1.71%) 0.00%

Health

Metric PGY PRGS Software Infrastructure median
Debt to equity 1.12 2.33 0.05
Current ratio 11.08 0.80 1.55
Net debt to EBITDA (1.90) 3.04 0.08

Dividend

Metric PGY PRGS Software Infrastructure median
Dividend yield — 0.00% 1.20%
Payout ratio — 0.00 0.29

Size

Metric PGY PRGS Software Infrastructure median
Market cap 1.49b 1.67b 752.37m

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