Progress Software Corporation (PRGS) vs Xanadu Quantum Technologies Limited (XNDU)

Progress Software Corporation and Xanadu Quantum Technologies Limited are both Software Infrastructure companies. Progress Software Corporation and Xanadu Quantum Technologies Limited are of similar size ($1.7B and $1.6B). Xanadu Quantum Technologies Limited has negative trailing earnings, so its P/E is not meaningful; Progress Software Corporation trades at 18.8×. Progress Software Corporation has the higher net margin (8.87% vs −1,475.7%) and the higher return on invested capital (6.41% vs −155.2%). Across the 14 metrics below, Progress Software Corporation leads on 11 and Xanadu Quantum Technologies Limited on 3.

Valuation

Metric PRGS XNDU Software Infrastructure median
P/E 18.82 n/m 28.02
P/S 1.64 244.44 3.07
P/B 3.26 4.76 3.36
Price to free cash flow 5.40 n/m 17.12
EV/EBITDA 8.69 n/m 14.91
EV/Sales 2.84 198.49 3.03
Earnings yield 5.31% (18.32%) 0.13%
Free cash flow yield 18.52% (4.77%) 1.15%

Profitability

Metric PRGS XNDU Software Infrastructure median
Gross margin 81.79% 94.26% 61.23%
Operating margin 17.33% (1,337.04%) 0.00%
Net margin 8.87% (1,475.65%) 0.00%
Free cash flow margin 30.41% (1,165.01%) 1.67%
Return on equity 18.57% 0.00% 0.59%
Return on assets 3.74% (46.87%) 0.00%
Return on invested capital 6.41% (155.22%) 0.00%

Growth

Metric PRGS XNDU Software Infrastructure median
Revenue growth (TTM) 15.50% — 13.41%
EPS growth (last fiscal year) 7.79% — —
Revenue growth, 5-year CAGR 17.20% — 15.81%
Net income growth, 5-year CAGR (1.71%) — 0.00%

Health

Metric PRGS XNDU Software Infrastructure median
Debt to equity 2.55 0.10 0.06
Current ratio 0.81 25.54 1.55
Net debt to EBITDA 3.04 — 0.08

Dividend

Metric PRGS XNDU Software Infrastructure median
Dividend yield 1.23% — 1.53%
Payout ratio 0.40 — 0.00

Size

Metric PRGS XNDU Software Infrastructure median
Market cap 1.65b 1.57b 835.96m

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