Head to Head Review: Mogo (NASDAQ:MOGO) & Formula Systems (1985) (NASDAQ:FORTY)

Mogo (NASDAQ:MOGO) and Formula Systems (1985) (NASDAQ:FORTY) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Volatility & Risk

Mogo has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500. Comparatively, Formula Systems (1985) has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Mogo and Formula Systems (1985), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mogo	1	0	0	0	1.00
Formula Systems (1985)	0	1	0	0	2.00

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mogo	$69.27 million	0.30	-$9.98 million	$0.23	3.75
Formula Systems (1985)	$2.63 billion	0.70	$606.48 million	$39.83	2.99

Formula Systems (1985) has higher revenue and earnings than Mogo. Formula Systems (1985) is trading at a lower price-to-earnings ratio than Mogo, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mogo	11.41%	7.78%	3.34%
Formula Systems (1985)	21.57%	4.38%	2.13%

Insider and Institutional Ownership

14.8% of Mogo shares are owned by institutional investors. Comparatively, 34.8% of Formula Systems (1985) shares are owned by institutional investors. 12.3% of Mogo shares are owned by insiders. Comparatively, 23.3% of Formula Systems (1985) 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.

Summary

Formula Systems (1985) beats Mogo on 8 of the 12 factors compared between the two stocks.

About Mogo

Mogo Inc. operates as a digital finance company in Canada, Europe, and internationally. The company's digital solutions help build wealth and achieve financial freedom. It provides MogoTrade, a stock trading app; Moka; and MogoMoney that provides online personal loans. The company also offers digital loans and mortgages; and operates a digital payments platform that powers next-generation card programs for both global corporations and fintech companies in Europe and Canada. Mogo Inc. is headquartered in Vancouver, Canada.

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.