Formula Systems (1985) (NASDAQ:FORTY) and Computer Task Group (NASDAQ:CTG) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Formula Systems (1985) pays an annual dividend of $0.47 per share and has a dividend yield of 0.8%. Computer Task Group does not pay a dividend.
This table compares Formula Systems (1985) and Computer Task Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Formula Systems (1985)||$1.49 billion||0.56||$32.37 million||N/A||N/A|
|Computer Task Group||$358.77 million||0.18||-$2.82 million||$0.24||18.38|
Formula Systems (1985) has higher revenue and earnings than Computer Task Group.
Volatility and Risk
Formula Systems (1985) has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Computer Task Group has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
This is a breakdown of current ratings for Formula Systems (1985) and Computer Task Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Formula Systems (1985)||0||0||0||0||N/A|
|Computer Task Group||0||0||2||0||3.00|
Computer Task Group has a consensus price target of $7.50, suggesting a potential upside of 70.07%. Given Computer Task Group’s higher probable upside, analysts clearly believe Computer Task Group is more favorable than Formula Systems (1985).
This table compares Formula Systems (1985) and Computer Task Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Formula Systems (1985)||2.32%||4.00%||1.90%|
|Computer Task Group||-0.66%||5.48%||2.67%|
Insider & Institutional Ownership
0.1% of Formula Systems (1985) shares are owned by institutional investors. Comparatively, 49.9% of Computer Task Group shares are owned by institutional investors. 23.3% of Formula Systems (1985) shares are owned by company insiders. Comparatively, 13.9% of Computer Task Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Formula Systems (1985) beats Computer Task Group on 8 of the 13 factors compared between the two stocks.
Formula Systems (1985) Company Profile
Formula Systems (1985) Ltd., through its subsidiaries, provides software, proprietary and non-proprietary software, and software product marketing and support services. The company offers computer and telecommunication infrastructure solutions; computer solutions to computer and communications infrastructures; cloud computing solutions; database and big data services; customer relations management, computer systems management infrastructures, Web world content management, database and data warehouse mining, application integration, database and systems, data management, and software development tools; and professional training courses and advanced professional studies. It also markets and sells computers and peripheral equipment to business customers. In addition, the company offers life, pension, and annuities platforms/solutions, including Sapiens ALIS, LifeSuite, Life Portraits, LifeApply, Sapiens INSIGHT, and Sapiens Closed Books; property and casualty/general insurance platforms/solutions, such as Sapiens IDIT, Adaptik Policy, Adaptik Billing, Stream Claim, Sapiens Stingray, PowerSuite, and CompSuite; and reinsurance software solutions comprising Sapiens Reinsurance, Freedom Reinsurance System, and Universal Reinsurance System. Further, it provides financial and compliance solutions that include eFreedom Annual Statement, PRO Financial General Ledger and Accounts Payable, Preferred Tax Enterprise Financial applications, Insurance Financial reporting, and Power2Play; Sapiens DECISION, a decision management platform; and technology-based solutions and digital insurance suites. Additionally, the company offers application development and business process integration platforms; vertical software solutions; vendor of software services and IT outsourcing software services; and professionals in various areas, as well as develops on-premise payroll software solutions. The company was founded in 1985 and is headquartered in Or Yehuda, Israel.
Computer Task Group Company Profile
Computer Task Group, Incorporated, together with its subsidiaries, operates as an information technology solutions and staffing services company in North America, Europe, and India. Its IT solutions include the implementation and optimization of packaged software applications; development and deployment of customized software and solutions designed to fit the needs of a specific client or market; and design and distribution of complex technology components, as well as offers consulting services. The company's IT and other staffing services include recruiting, retaining, and managing IT and other talent primarily for technology service providers and other companies with multiple locations. It serves technology service and healthcare providers, and health insurers, as well as manufacturing, life sciences, energy, and financial services companies. Computer Task Group, Incorporated was founded in 1966 and is headquartered in Buffalo, New York.
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