Progress Software (NASDAQ:PRGS – Get Free Report) and Next Technology (NASDAQ:NXTT – Get Free Report) are both small-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Risk and Volatility
Progress Software has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Next Technology has a beta of 5.98, suggesting that its stock price is 498% more volatile than the S&P 500.
Institutional & Insider Ownership
2.7% of Next Technology shares are owned by institutional investors. 4.1% of Progress Software shares are owned by insiders. Comparatively, 52.2% of Next Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Progress Software and Next Technology”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Progress Software | $977.83 million | 1.94 | $73.13 million | $2.17 | 21.34 |
| Next Technology | $11.61 million | 0.63 | $143.16 million | ($12,900.00) | -0.00 |
Next Technology has lower revenue, but higher earnings than Progress Software. Next Technology is trading at a lower price-to-earnings ratio than Progress Software, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Progress Software and Next Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Progress Software | 9.24% | 42.91% | 9.09% |
| Next Technology | -2,355.97% | -60.08% | -53.71% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Progress Software and Next Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Progress Software | 0 | 2 | 6 | 1 | 2.89 |
| Next Technology | 1 | 0 | 0 | 0 | 1.00 |
Progress Software currently has a consensus price target of $51.57, suggesting a potential upside of 11.36%. Given Progress Software’s stronger consensus rating and higher possible upside, equities analysts plainly believe Progress Software is more favorable than Next Technology.
Summary
Progress Software beats Next Technology on 11 of the 15 factors compared between the two stocks.
About Progress Software
Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers. It also provides MOVEit, a managed file transfer software for managing and controlling the movement of sensitive files and securing them both at-rest and in-transit; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data and SaaS data sources; WhatsUp Gold, a network infrastructure monitoring software providing complete visibility of all network devices, servers, virtual machines, and cloud and wireless environments to find and fix network problems; Flowmon, a network security and visibility product with automated response across hybrid cloud ecosystems; Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules; MarkLogic, a data agility platform to connect data and metadata; and Semaphore, a Semantic AI platform. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications; and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.
About Next Technology
Next Technology Holding Inc. provides technical services and solutions through its social e-commerce platform primarily in Mainland China. It offers YCloud, a micro-business cloud intelligent internationalization system that conducts multi-channel data analysis through the learning of big data and social recommendation relationships, as well as provides users with AI fission and management systems, and supply chain systems. The company’s YCloud system also provides micro-business owners with various payment methods, such as Alipay, WeChat, and UnionPay. In addition, it offers chatGPT technical services; and technical system support, software development, and services. The company serves individual and corporate users in the micro business industry. It also has operations in Hong Kong and Singapore. The company was formerly known as WeTrade Group, Inc. and changed its name to Next Technology Holding Inc in April 2024. Next Technology Holding Inc. was incorporated in 2019 and is headquartered in Beijing, the People Republic of China.
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