Analyzing PROS (PRO) and Callidus Software (CALD)

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PROS (NASDAQ: CALD) and Callidus Software (NASDAQ:CALD) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares PROS and Callidus Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PROS -40.25% N/A -15.01%
Callidus Software -8.01% -4.16% -2.42%

Volatility & Risk

PROS has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Callidus Software has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for PROS and Callidus Software, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PROS 0 2 4 1 2.86
Callidus Software 0 9 2 0 2.18

PROS currently has a consensus target price of $40.29, indicating a potential upside of 5.29%. Callidus Software has a consensus target price of $33.10, indicating a potential downside of 8.06%. Given PROS’s stronger consensus rating and higher possible upside, research analysts plainly believe PROS is more favorable than Callidus Software.

Earnings & Valuation

This table compares PROS and Callidus Software’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PROS $168.82 million 7.42 -$77.92 million ($1.53) -25.01
Callidus Software $253.09 million 9.45 -$20.27 million ($0.19) -189.47

Callidus Software has higher revenue and earnings than PROS. Callidus Software is trading at a lower price-to-earnings ratio than PROS, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

94.5% of Callidus Software shares are owned by institutional investors. 15.4% of PROS shares are owned by company insiders. Comparatively, 1.6% of Callidus Software shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

PROS beats Callidus Software on 8 of the 15 factors compared between the two stocks.

About PROS

PROS Holdings, Inc., a cloud software company, provides solutions for companies to price, configure, and sell their products and services to their customers. The company offers SellingPRO solutions, which include configuration, quoting, and e-commerce capabilities with data science; and PricingPRO solutions that deliver insight into pricing practices and provides pricing recommendations, as well as enhances control over pricing execution. It also provides RevenuePRO solutions that offer a set of integrated software solutions that enable enterprises in the travel industry, including the airline, hotel, and cruise industries to drive revenue and profit-maximizing business strategies through the application of forecasting, optimization technologies, and decision-support capabilities consisting of RevenuePRO Passenger Revenue Management, RevenuePRO Group Sales Optimizer, RevenuePRO Real-Time Dynamic Pricing, RevenuePRO Shopping, and RevenuePRO Merchandising. In addition, the company offers implementation and configuration, consulting, training, and maintenance and support; and strategic services, including discovery and insight consulting services, as well as software-as-a-service and cloud-based services. It serves manufacturing, distribution, and services industries, including automotive and industrial, B2B services, cargo, chemicals and energy, consumer goods, insurance, food and beverage, healthcare, high tech, and travel industries in the United States, Europe, and internationally. The company markets and sells its software solutions primarily through its direct global sales force, as well as indirectly through resellers and systems integrators. PROS Holdings, Inc. was founded in 1985 and is headquartered in Houston, Texas.

About Callidus Software

Callidus Software Inc. provides cloud-based sales, marketing, learning, and customer experience solutions worldwide. The company enables its customers to sell Lead to Money suite of solutions that identify leads, train personnel, implement territory and quota plans, enable sales forces, automate configuration pricing and quoting, manage contracts, streamline sales compensation, capture customer feedback, and provide predictive analytics for competitive advantage. It offers Lead to Money suite and technology solutions, which include sales performance management solutions, such as Commissions, Territory and Quota, and SalesMotivate; Sales Execution solutions, including Configure Price Quote, Contract Lifecycle Management, Datahug, and Revsym; and Customer Engagement solutions comprising Marketing Automation, Voice of the Customer, and ServiceMotivate. The company also provides Sales Enablement and Learning solutions consisting of Enablement, Litmos Learning Management System, Litmos Heroes, and Coaching; Technology solutions, including Database Management System, Thunderbridge Advanced Analytics, Thunderbridge Augmented Intelligence, Workflow, and Connect Enterprise; and Vertical Solutions, such as Producer Pro, Telco Dealer Pro, Incentive Compensation Management, and DS Pro. In addition, it offers a range of services comprising professional, business process outsourcing, maintenance and technical support, and education services Callidus Software Inc. was founded in 1996 and is headquartered in Dublin, California.

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