SecureWorks (NASDAQ:SCWX – Get Free Report) and Progress Software (NASDAQ:PRGS – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for SecureWorks and Progress Software, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SecureWorks | 1 | 1 | 0 | 0 | 1.50 |
| Progress Software | 0 | 2 | 3 | 0 | 2.60 |
SecureWorks presently has a consensus price target of $7.83, indicating a potential upside of 2.66%. Progress Software has a consensus price target of $60.80, indicating a potential upside of 4.04%. Given Progress Software’s stronger consensus rating and higher possible upside, analysts plainly believe Progress Software is more favorable than SecureWorks.
Institutional and Insider Ownership
Risk & Volatility
SecureWorks has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Progress Software has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Profitability
This table compares SecureWorks and Progress Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SecureWorks | -28.35% | -14.99% | -10.16% |
| Progress Software | 12.49% | 40.44% | 10.76% |
Earnings and Valuation
This table compares SecureWorks and Progress Software’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SecureWorks | $463.48 million | 1.42 | -$114.50 million | ($1.45) | -5.26 |
| Progress Software | $602.01 million | 4.21 | $95.07 million | $1.84 | 31.76 |
Progress Software has higher revenue and earnings than SecureWorks. SecureWorks is trading at a lower price-to-earnings ratio than Progress Software, indicating that it is currently the more affordable of the two stocks.
Summary
Progress Software beats SecureWorks on 11 of the 14 factors compared between the two stocks.
About SecureWorks
SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. The company's solutions include software-as-a-service solutions, managed security services, and professional services, including incident response and adversarial services. Its solutions enable organizations to prevent security breaches, detect malicious activity, respond rapidly to security breaches, and identify emerging threats. The company sells its solutions primarily through its referral agents, regional value-added resellers, trade associations, and managed security service providers. It serves customers in a range of industries, including financial services, manufacturing, technology, retail, insurance, utility, and healthcare sectors. The company was formerly known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. SecureWorks Corp. was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Marketing L.P.
About Progress Software
Progress Software Corporation develops, deploys, and manages business applications. 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, a flexible 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; and Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules. Further, the company offers project management, implementation, custom 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, and system integrators. It has operations in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.
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