Enghouse Systems (TSE:ENGH) and ProntoForms (CVE:PFM) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Enghouse Systems and ProntoForms, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Enghouse Systems | 0 | 0 | 1 | 0 | 3.00 |
ProntoForms | 0 | 0 | 1 | 0 | 3.00 |
Enghouse Systems presently has a consensus target price of C$74.75, indicating a potential upside of 27.36%. ProntoForms has a consensus target price of C$1.35, indicating a potential upside of 22.73%. Given Enghouse Systems' higher probable upside, equities analysts plainly believe Enghouse Systems is more favorable than ProntoForms.
Profitability
This table compares Enghouse Systems and ProntoForms' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Enghouse Systems | N/A | N/A | N/A |
ProntoForms | N/A | N/A | N/A |
Dividends
Enghouse Systems pays an annual dividend of C$0.52 per share and has a dividend yield of 0.9%. ProntoForms pays an annual dividend of C$0.51 per share and has a dividend yield of 46.4%. Enghouse Systems pays out 27.9% of its earnings in the form of a dividend. ProntoForms pays out -3,187.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ProntoForms is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Enghouse Systems and ProntoForms' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Enghouse Systems | C$512.22 million | 6.34 | C$102.29 million | C$1.85 | 31.76 |
ProntoForms | C$17.67 million | 7.91 | C$-2,033,648.00 | C($0.02) | -68.75 |
Enghouse Systems has higher revenue and earnings than ProntoForms. ProntoForms is trading at a lower price-to-earnings ratio than Enghouse Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Enghouse Systems beats ProntoForms on 5 of the 8 factors compared between the two stocks.