Progress Software Corporation (PRGS) vs StoneCo Ltd. (STNE)

Progress Software Corporation and StoneCo Ltd. are both Software Infrastructure companies. Progress Software Corporation and StoneCo Ltd. are of similar size ($1.8B and $1.8B). StoneCo Ltd. trades at the lower P/E: 2.9× against 20.2×. StoneCo Ltd. grew revenue faster over the last twelve months: 8.71% against 6.36%. StoneCo Ltd. has the higher net margin (24.1% vs 9.24%) and the higher return on invested capital (27.2% vs 6.69%). Neither pays a dividend. Across the 22 metrics below, StoneCo Ltd. leads on 20 and Progress Software Corporation on 2.

Valuation

Metric PRGS STNE Software Infrastructure median
P/E 20.16 2.93 26.15
P/S 1.81 0.66 2.87
P/B 3.42 0.99 2.94
Price to free cash flow 5.68 2.43 17.26
EV/EBITDA 8.98 2.02 15.00
EV/Sales 2.95 1.14 2.95
Earnings yield 4.96% 34.14% 0.00%
Free cash flow yield 17.60% 41.07% 0.39%

Profitability

Metric PRGS STNE Software Infrastructure median
Gross margin 82.23% 73.59% 59.21%
Operating margin 17.66% 49.68% 0.00%
Net margin 9.24% 24.12% 0.00%
Free cash flow margin 31.92% 27.20% 0.00%
Return on equity 18.34% 33.67% 0.00%
Return on assets 3.91% 6.10% 0.00%
Return on invested capital 6.69% 27.16% 0.00%

Growth

Metric PRGS STNE Software Infrastructure median
Revenue growth (TTM) 6.36% 8.71% 13.57%
EPS growth (last fiscal year) 7.79% 265.22% 20.22%
Revenue growth, 5-year CAGR 17.20% 31.53% 16.02%
Net income growth, 5-year CAGR (1.71%) 20.77% 0.00%

Health

Metric PRGS STNE Software Infrastructure median
Debt to equity 2.33 1.80 0.02
Current ratio 0.80 1.26 1.54
Net debt to EBITDA 3.04 1.18 0.05

Dividend

Metric PRGS STNE Software Infrastructure median
Dividend yield 0.00% 0.00% 1.09%
Payout ratio 0.00 0.00 0.30

Size

Metric PRGS STNE Software Infrastructure median
Market cap 1.80b 1.80b 655.75m

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