Financial Review: OptimizeRx (NASDAQ:OPRX) and PROS (NYSE:PRO)

OptimizeRx (NASDAQ:OPRX) and PROS (NYSE:PRO) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Volatility & Risk

OptimizeRx has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, PROS has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Earnings and Valuation

This table compares OptimizeRx and PROS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$92.13 million	2.65	-$18.66 million	($0.84)	-15.71
PROS	$336.01 million	2.13	-$20.48 million	($0.28)	-53.43

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

Insider & Institutional Ownership

76.5% of OptimizeRx shares are owned by institutional investors. Comparatively, 94.3% of PROS shares are owned by institutional investors. 5.6% of OptimizeRx shares are owned by insiders. Comparatively, 4.0% of PROS shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for OptimizeRx and PROS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	0	3	8	0	2.73
PROS	0	3	6	0	2.67

OptimizeRx presently has a consensus target price of $10.81, indicating a potential downside of 18.09%. PROS has a consensus target price of $28.00, indicating a potential upside of 87.17%. Given PROS’s higher probable upside, analysts clearly believe PROS is more favorable than OptimizeRx.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	-16.33%	-0.29%	-0.20%
PROS	-3.81%	N/A	-2.35%

Summary

OptimizeRx beats PROS on 8 of the 14 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

About PROS

PROS Holdings, Inc. provides software solutions that optimize the processes of selling and shopping in the digital economy in Europe, the Asia Pacific, the Middle East, Africa, and internationally. The company offers PROS Smart Configure Price Quote that improves sales productivity and accelerate deal velocity by automating common sales tasks; and PROS Smart Price Optimization and Management, which enables businesses to optimize, personalize, and harmonize pricing. It also provides PROS Airline Revenue Optimization; PROS Airline Revenue Management solution that delivers algorithmic forecasting and network optimization for the travel industry; PROS Airline Real-Time Dynamic Pricing, which offers accurate booking class availability and seat prices; PROS Dynamic Ancillary Pricing, an AI-based reinforcement learning algorithm; PROS Airline Group Sales Optimizer that enables airlines and their travel agent partners to create and manage group bookings, contracts, policies, and payments; and PROS Corporate Sales, a solution that enables airlines to create commercial agreements with corporate customers. In addition, the company provides PROS Digital Retail, a configurable end-to-end solution for airlines to optimize the traveler experience from inspiration to post-trip; PROS Dynamic Offers; and PROS Digital Offer Marketing solutions comprising airTRFX, airModules, airWire, and airSEM platforms. Further, it provides software-related services, such as implementation, configuration, consulting, training, maintenance, and support services. The company markets and sells its solutions to customers in various industries, including automotive and industrial manufacturing, transportation and logistics, chemicals and energy, food and consumables, beverages, healthcare, insurance, technology, and travel through its direct sales force, partners, resellers, and systems integrators. PROS Holdings, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.