Virtusa (NASDAQ:VRTU) and PROS (NYSE:PRO) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Valuation & Earnings
This table compares Virtusa and PROS’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Virtusa||$1.25 billion||1.08||$16.15 million||$1.46||30.61|
|PROS||$197.02 million||13.30||-$64.24 million||($1.09)||-57.15|
This is a breakdown of current recommendations and price targets for Virtusa and PROS, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Virtusa currently has a consensus price target of $54.40, indicating a potential upside of 21.73%. PROS has a consensus price target of $71.20, indicating a potential upside of 14.30%. Given Virtusa’s stronger consensus rating and higher possible upside, analysts clearly believe Virtusa is more favorable than PROS.
This table compares Virtusa and PROS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
86.0% of Virtusa shares are held by institutional investors. Comparatively, 95.7% of PROS shares are held by institutional investors. 4.7% of Virtusa shares are held by company insiders. Comparatively, 13.7% of PROS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Virtusa has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, PROS has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.
Virtusa beats PROS on 10 of the 14 factors compared between the two stocks.
Virtusa Company Profile
Virtusa Corporation provides digital engineering and information technology (IT) outsourcing services worldwide. The company offers business and IT consulting services, including advisory/target operating model, business process re-engineering/business management, transformational solution consulting, and business/technology alignment analysis; omni-channel digital strategy, experience design accelerated solution design, and employee engagement; and application portfolio rationalization, SDLC transformation, and BA competency transformation services. It also provides application development, software product engineering, CRM and SAP implementation, content management, enterprise mobility, cloud computing, and social media solutions; systems consolidation and rationalization, technology migration and porting, and legacy application Web-enablement; data management, business intelligence, reporting and decision support, master data management, data integration, and big data analytics; and software quality assurance and managed testing services. In addition, the company offers application maintenance and support, applications enhancement, and cloud-environment management and support; managed infrastructure, and remote application monitoring and support services; and IT efficiency improvement services. Further, it offers digital engineering and operational excellence services-based, and transformational solutions. The company serves communications and technology; banking, financial services, and insurance; and media and information industries. The company has collaboration agreements with Moxtra, Inc. to develop and deploy solutions for financial services firms, as well as the Banking Industry Architecture Network; and Indiana Biosciences Research Institute. The company was formerly known as eRunway, Inc. and changed its name to Virtusa Corporation in April 2002. Virtusa Corporation was founded in 1996 and is headquartered in Southborough, Massachusetts.
PROS Company Profile
PROS Holdings, Inc. offers artificial intelligence (AI) solutions that power commerce in the digital economy worldwide. The company's solutions enable buying experiences for business-to-business (B2B) and business-to-consumer companies. It delivers its cloud-based solutions through the Internet as a Service on a subscription basis. The company offers solutions for selling improvement, including PROS Smart CPQ that automates the quoting process by enabling sales teams, partners, and end customers on e-commerce platforms; and PROS Opportunity Detection solutions, which enhances sales productivity, accelerates quota attainment, and delivers data-driven product recommendations. It also provides PROS pricing solutions comprising PROS Control, a platform for price measurement, coordination, and strategy; and PROS Guidance, a prescriptive price guidance solution. In addition, the company provides PROS airline revenue optimization solutions consisting of PROS Airline Revenue Management, PROS Airline Real-Time Dynamic Pricing, and PROS Airline Group Sales for enterprises in the travel industry, including the airline, hotel, and cruise. Further, it offers Airline e-commerce suite of products, such as PROS Airline Shopping and PROS Airline Merchandising that provide airlines with shopping and merchandising capabilities. Additionally, the company offers professional services consisting of implementation and configuration, consulting, and training; and maintenance and support services. It sells its software solutions to customers in various industries, including automotive and industrial, B2B services, cargo, chemicals and energy, consumer goods, insurance, food and beverage, healthcare, high tech, and travel. The company markets and sells its software solutions primarily through its direct global sales force, as well as indirectly through go-to-market partners, resellers, and systems integrators. PROS Holdings, Inc. was founded in 1985 and is headquartered in Houston, Texas.
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