PRGS
Progress Software Corporation
Software - Application
Market Cap$1.19B
5Y Perf.-30.2%
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Stock Comparison
PRGS vs GWRE
Revenue, margins, valuation, and 5-year total return — side by side.
GWRE
Guidewire Software, Inc.
Software - Application
Market Cap$11.08B
5Y Perf.+27.8%
PRGS vs GWRE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | PRGS | GWRE |
|---|---|---|
| Industry | Software - Application | Software - Application |
| Market Cap | $1.19B | $11.08B |
| Revenue (TTM) | $978M | $1.34B |
| Net Income (TTM) | $73M | $189M |
| Gross Margin | 80.8% | 63.8% |
| Operating Margin | 15.7% | 6.8% |
| Forward P/E | 4.7x | 37.3x |
| Total Debt | $851M | $716M |
| Cash & Equiv. | $95M | $699M |
PRGS vs GWRE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
PRGS
GWRE
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Progress Software C… (PRGS) | 100 | 69.8 | -30.2% |
| Guidewire Software,… (GWRE) | 100 | 127.8 | +27.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PRGS vs GWRE
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: GWRE leads in 4 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. Progress Software Corporation is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
PRGS
Progress Software Corporation
The Growth Play
PRGS is the clearest fit if your priority is growth exposure.
- Rev growth 29.8%, EPS growth 7.8%, 3Y rev CAGR 17.5%
- 29.8% revenue growth vs GWRE's 22.6%
- Lower P/E (4.7x vs 37.3x)
Best for: growth exposure
GWRE
Guidewire Software, Inc.
The Income Pick
GWRE carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- beta 0.61
- 136.7% 10Y total return vs PRGS's 35.0%
- Lower volatility, beta 0.61, Low D/E 49.1%, current ratio 2.77x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PRGS | 29.8% revenue growth vs GWRE's 22.6% |
| Value | PRGS | Lower P/E (4.7x vs 37.3x) |
| Quality / Margins | GWRE | 14.1% margin vs PRGS's 7.5% |
| Stability / Safety | GWRE | Beta 0.61 vs PRGS's 1.01, lower leverage |
| Dividends | PRGS | 0.1% yield; the other pay no meaningful dividend |
| Momentum (1Y) | GWRE | -37.9% vs PRGS's -53.6% |
| Efficiency (ROA) | GWRE | 7.2% ROA vs PRGS's 3.0%, ROIC 2.3% vs 7.4% |
PRGS vs GWRE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
PRGS vs GWRE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLGWRELAGGINGPRGS
PRGSProgress Software Cor…
2leads
GWREGuidewire Software, I…
3leads
6 Total Categories
CATEGORYLEADERvs PRGSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
PRGS4/6
Valuation MetricsMultiples, price ratios, and targets
PRGS6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
GWRE6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
GWRE6/6
Risk & VolatilityBeta, volatility, and downside exposure
GWRE2/2
Analyst OutlookRatings, price targets, and dividends
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Income & Cash Flow (Last 12 Months)
PRGS leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
GWRE and PRGS operate at a comparable scale, with $1.3B and $978M in trailing revenue. GWRE is the more profitable business, keeping 14.1% of every revenue dollar as net income compared to PRGS's 7.5%. On growth, GWRE holds the edge at +24.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PRGSProgress Software… | GWREGuidewire Softwar… |
|---|---|---|
| RevenueTrailing 12 months | $978M | $1.3B |
| EBITDAEarnings before interest/tax | $160M | $103M |
| Net IncomeAfter-tax profit | $73M | $189M |
| Free Cash FlowCash after capex | $229M | $310M |
| Gross MarginGross profit ÷ Revenue | +80.8% | +63.8% |
| Operating MarginEBIT ÷ Revenue | +15.7% | +6.8% |
| Net MarginNet income ÷ Revenue | +7.5% | +14.1% |
| FCF MarginFCF ÷ Revenue | +23.5% | +23.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.5% | +24.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +22.2% | +2.6% |
PRGS leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
PRGS leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 17.0x trailing earnings, PRGS trades at a 90% valuation discount to GWRE's 161.8x P/E. On an enterprise value basis, PRGS's 12.2x EV/EBITDA is more attractive than GWRE's 171.2x.
| Metric | PRGSProgress Software… | GWREGuidewire Softwar… |
|---|---|---|
| Market CapShares × price | $1.2B | $11.1B |
| Enterprise ValueMkt cap + debt − cash | $1.9B | $11.1B |
| Trailing P/EPrice ÷ TTM EPS | 16.98x | 161.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 4.71x | 37.28x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 12.22x | 171.19x |
| Price / SalesMarket cap ÷ Revenue | 1.22x | 9.22x |
| Price / BookPrice ÷ Book value/share | 2.59x | 7.73x |
| Price / FCFMarket cap ÷ FCF | 5.20x | 37.55x |
PRGS leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
GWRE leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
PRGS delivers a 15.3% return on equity — every $100 of shareholder capital generates $15 in annual profit, vs $13 for GWRE. GWRE carries lower financial leverage with a 0.49x debt-to-equity ratio, signaling a more conservative balance sheet compared to PRGS's 1.78x. On the Piotroski fundamental quality scale (0–9), GWRE scores 7/9 vs PRGS's 6/9, reflecting strong financial health.
| Metric | PRGSProgress Software… | GWREGuidewire Softwar… |
|---|---|---|
| ROE (TTM)Return on equity | +15.3% | +12.9% |
| ROA (TTM)Return on assets | +3.0% | +7.2% |
| ROICReturn on invested capital | +7.4% | +2.3% |
| ROCEReturn on capital employed | +8.2% | +2.3% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 1.78x | 0.49x |
| Net DebtTotal debt minus cash | $756M | $17M |
| Cash & Equiv.Liquid assets | $95M | $699M |
| Total DebtShort + long-term debt | $851M | $716M |
| Interest CoverageEBIT ÷ Interest expense | 2.16x | 388.85x |
GWRE leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
GWRE leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in GWRE five years ago would be worth $13,359 today (with dividends reinvested), compared to $6,993 for PRGS. Over the past 12 months, GWRE leads with a -37.9% total return vs PRGS's -53.6%. The 3-year compound annual growth rate (CAGR) favors GWRE at 19.0% vs PRGS's -18.4% — a key indicator of consistent wealth creation.
| Metric | PRGSProgress Software… | GWREGuidewire Softwar… |
|---|---|---|
| YTD ReturnYear-to-date | -31.4% | -30.1% |
| 1-Year ReturnPast 12 months | -53.6% | -37.9% |
| 3-Year ReturnCumulative with dividends | -45.7% | +68.7% |
| 5-Year ReturnCumulative with dividends | -30.1% | +33.6% |
| 10-Year ReturnCumulative with dividends | +35.0% | +136.7% |
| CAGR (3Y)Annualised 3-year return | -18.4% | +19.0% |
GWRE leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
GWRE leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
GWRE is the less volatile stock with a 0.61 beta — it tends to amplify market swings less than PRGS's 1.01 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GWRE currently trades 48.1% from its 52-week high vs PRGS's 43.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PRGSProgress Software… | GWREGuidewire Softwar… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.01x | 0.61x |
| 52-Week HighHighest price in past year | $65.50 | $272.60 |
| 52-Week LowLowest price in past year | $23.82 | $115.57 |
| % of 52W HighCurrent price vs 52-week peak | +43.0% | +48.1% |
| RSI (14)Momentum oscillator 0–100 | 48.6 | 49.3 |
| Avg Volume (50D)Average daily shares traded | 1.0M | 1.4M |
GWRE leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates PRGS as "Buy" and GWRE as "Buy". Consensus price targets imply 87.0% upside for GWRE (target: $245) vs 59.7% for PRGS (target: $45).
| Metric | PRGSProgress Software… | GWREGuidewire Softwar… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $45.00 | $245.17 |
| # AnalystsCovering analysts | 13 | 26 |
| Dividend YieldAnnual dividend ÷ price | +0.1% | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | $0.02 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +8.8% | 0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
GWRE leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). PRGS leads in 2 (Income & Cash Flow, Valuation Metrics).
Best OverallGuidewire Software, Inc. (GWRE)Leads 3 of 6 categories
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PRGS vs GWRE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PRGS or GWRE a better buy right now?
For growth investors, Progress Software Corporation (PRGS) is the stronger pick with 29.
8% revenue growth year-over-year, versus 22. 6% for Guidewire Software, Inc. (GWRE). Progress Software Corporation (PRGS) offers the better valuation at 17. 0x trailing P/E (4. 7x forward), making it the more compelling value choice. Analysts rate Progress Software Corporation (PRGS) a "Buy" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — PRGS or GWRE?
On trailing P/E, Progress Software Corporation (PRGS) is the cheapest at 17.
0x versus Guidewire Software, Inc. at 161. 8x. On forward P/E, Progress Software Corporation is actually cheaper at 4. 7x.
03Which is the better long-term investment — PRGS or GWRE?
Over the past 5 years, Guidewire Software, Inc.
(GWRE) delivered a total return of +33. 6%, compared to -30. 1% for Progress Software Corporation (PRGS). Over 10 years, the gap is even starker: GWRE returned +136. 7% versus PRGS's +35. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — PRGS or GWRE?
By beta (market sensitivity over 5 years), Guidewire Software, Inc.
(GWRE) is the lower-risk stock at 0. 61β versus Progress Software Corporation's 1. 01β — meaning PRGS is approximately 66% more volatile than GWRE relative to the S&P 500. On balance sheet safety, Guidewire Software, Inc. (GWRE) carries a lower debt/equity ratio of 49% versus 178% for Progress Software Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — PRGS or GWRE?
By revenue growth (latest reported year), Progress Software Corporation (PRGS) is pulling ahead at 29.
8% versus 22. 6% for Guidewire Software, Inc. (GWRE). On earnings-per-share growth, the picture is similar: Guidewire Software, Inc. grew EPS 1192% year-over-year, compared to 7. 8% for Progress Software Corporation. Over a 3-year CAGR, PRGS leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — PRGS or GWRE?
Progress Software Corporation (PRGS) is the more profitable company, earning 7.
5% net margin versus 5. 8% for Guidewire Software, Inc. — meaning it keeps 7. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PRGS leads at 15. 7% versus 3. 4% for GWRE. At the gross margin level — before operating expenses — PRGS leads at 80. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is PRGS or GWRE more undervalued right now?
On forward earnings alone, Progress Software Corporation (PRGS) trades at 4.
7x forward P/E versus 37. 3x for Guidewire Software, Inc. — 32. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GWRE: 87. 0% to $245. 17.
08Which pays a better dividend — PRGS or GWRE?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is PRGS or GWRE better for a retirement portfolio?
For long-horizon retirement investors, Guidewire Software, Inc.
(GWRE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 61), +136. 7% 10Y return). Both have compounded well over 10 years (GWRE: +136. 7%, PRGS: +35. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between PRGS and GWRE?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(PRGS: 17.5% · GWRE: 24.0%)Net Margin>
%
(PRGS: 7.5% · GWRE: 14.1%)P/E Ratio<
x
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