Critical Survey: Formula Systems (1985) (NASDAQ:FORTY) versus Technology Solutions (OTCMKTS:TSCC)

Technology Solutions (OTCMKTS:TSCC) and Formula Systems (1985) (NASDAQ:FORTY) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares Technology Solutions and Formula Systems (1985)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Technology Solutions	N/A	N/A	N/A
Formula Systems (1985)	2.70%	5.58%	2.58%

Earnings & Valuation

This table compares Technology Solutions and Formula Systems (1985)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Technology Solutions	N/A	N/A	N/A	N/A	N/A
Formula Systems (1985)	$2.89 billion	0.79	$79.67 million	$4.54	32.88

Formula Systems (1985) has higher revenue and earnings than Technology Solutions.

Volatility and Risk

Technology Solutions has a beta of 4.26, meaning that its stock price is 326% more volatile than the S&P 500. Comparatively, Formula Systems (1985) has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Insider and Institutional Ownership

34.8% of Formula Systems (1985) shares are owned by institutional investors. 6.1% of Technology Solutions shares are owned by company insiders. Comparatively, 23.3% of Formula Systems (1985) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Technology Solutions and Formula Systems (1985), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Technology Solutions	0	0	0	0	0.00
Formula Systems (1985)	0	1	0	0	2.00

Given Technology Solutions’ higher possible upside, equities analysts clearly believe Technology Solutions is more favorable than Formula Systems (1985).

Summary

Formula Systems (1985) beats Technology Solutions on 7 of the 9 factors compared between the two stocks.

About Technology Solutions

Technology Solutions Company provides systems integration and information technology (IT) consulting services to the manufacturing and distribution, healthcare and life sciences, consumer products and retail, and financial services industry. Technology Solutions Company was founded in 1988 and is based in Chicago, Illinois.

About Formula Systems (1985)

Formula Systems (1985) Ltd., through its subsidiaries, provides proprietary and non-proprietary software solutions, IT professional services, software product marketing and support, computer infrastructure and integration solutions, and learning and integration worldwide. The company offers computer and telecommunication infrastructure solutions; and sells and markets computers and peripheral equipment, and cloud based solutions and services relating to databases and big data. It also provides 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 application and professional training courses, and advanced professional studies. In addition, the company offers property and casualty insurance platforms, such as Sapiens, Sapiens CoreSuite, Sapiens IDITSuite, and IDIT Go; life, pension, and annuities platforms, including Sapiens, Sapiens CoreSuite, Sapiens UnderwritingPro, Sapiens ApplicationPro, Sapiens IllustrationPro, and Sapiens ConsolidationMaster; Sapiens Cloud-based DigitalSuite; data and analytics platform; and reinsurance software solutions comprising Sapiens ReinsuranceMaster, Sapiens ReinsurancePro, and Sapiens Reinsurance GO. Further, it provides Sapiens workers' compensation solutions; Sapiens medical professional liability solutions; financial and compliance solutions, such as Sapiens FinancialPro, Sapiens Financial GO, Sapiens StatementPro, Sapiens CheckPro, and Sapiens Reporting Tools; Sapiens Decision; and technology-based solutions. Additionally, it offers application development and business process integration platforms; vertical software solutions; strategic consulting and outsourcing services; and professional services in various areas, as well as develops on-premise payroll software. The company was incorporated in 1985 and is headquartered in Or Yehuda, Israel.