PROS (NYSE:PRO) and Sogou (NYSE:SOGO) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.
Insider and Institutional Ownership
98.9% of PROS shares are held by institutional investors. Comparatively, 7.3% of Sogou shares are held by institutional investors. 15.4% of PROS shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares PROS and Sogou’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
PROS | $168.82 million | 7.60 | -$77.92 million | ($1.53) | -22.57 |
Sogou | $908.36 million | 2.67 | $82.20 million | $0.29 | 21.03 |
Sogou has higher revenue and earnings than PROS. PROS is trading at a lower price-to-earnings ratio than Sogou, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for PROS and Sogou, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
PROS | 0 | 1 | 5 | 1 | 3.00 |
Sogou | 0 | 3 | 0 | 0 | 2.00 |
PROS presently has a consensus target price of $42.00, suggesting a potential upside of 21.63%. Sogou has a consensus target price of $11.10, suggesting a potential upside of 81.97%. Given Sogou’s higher probable upside, analysts plainly believe Sogou is more favorable than PROS.
Profitability
This table compares PROS and Sogou’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
PROS | -35.89% | N/A | -13.10% |
Sogou | 7.96% | 13.07% | 8.90% |
Volatility & Risk
PROS has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Sogou has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
Summary
Sogou beats PROS on 9 of the 15 factors compared between the two stocks.
About PROS
About Sogou
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