Formula Systems (1985) (NASDAQ:FORTY) and Computer Programs & Systems (NASDAQ:CPSI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
This is a breakdown of recent recommendations and price targets for Formula Systems (1985) and Computer Programs & Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Formula Systems (1985)||0||0||0||0||N/A|
|Computer Programs & Systems||1||4||1||0||2.00|
Computer Programs & Systems has a consensus price target of $27.00, suggesting a potential downside of 0.59%. Given Computer Programs & Systems’ higher probable upside, analysts clearly believe Computer Programs & Systems is more favorable than Formula Systems (1985).
Formula Systems (1985) pays an annual dividend of $0.47 per share and has a dividend yield of 1.2%. Computer Programs & Systems pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Computer Programs & Systems pays out 30.1% of its earnings in the form of a dividend.
Institutional and Insider Ownership
0.1% of Formula Systems (1985) shares are owned by institutional investors. Comparatively, 86.7% of Computer Programs & Systems shares are owned by institutional investors. 23.3% of Formula Systems (1985) shares are owned by insiders. Comparatively, 4.8% of Computer Programs & Systems shares are owned by 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.
This table compares Formula Systems (1985) and Computer Programs & Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Formula Systems (1985)||1.83%||3.42%||1.68%|
|Computer Programs & Systems||-4.02%||16.74%||7.43%|
Valuation and Earnings
This table compares Formula Systems (1985) and Computer Programs & Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Formula Systems (1985)||$1.36 billion||0.41||$10.35 million||N/A||N/A|
|Computer Programs & Systems||$276.93 million||1.38||-$17.10 million||$1.33||20.42|
Formula Systems (1985) has higher revenue and earnings than Computer Programs & Systems.
Risk and Volatility
Formula Systems (1985) has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Computer Programs & Systems has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500.
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 Programs & Systems Company Profile
Computer Programs and Systems, Inc. provides healthcare information technology solutions and services in the United States and the Caribbean nation of St. Maarten. Its software systems include patient management software that enables a hospital to identify a patient at various points in the healthcare delivery system, as well as helps to collect and maintain patient information throughout the process of patient care; and financial accounting software, which offers business office applications to track and coordinate information needed for managerial decision-making. The company also provides clinical software that automates record keeping and reporting for various clinical functions; patient care applications; and enterprise applications that support its products for use in various areas of the hospital. In addition, it offers Healthland Centriq, a Web-based electronic health record platform that centralizes data from various care areas; and Healthland Classic that offers a suite of integrated applications for managing operations, resources, and people, as well as for ambulatory information management solutions. Further, the company provides software solutions that promote data-driven clinical and financial outcomes for customers in the post-acute care industry; software application support, hardware maintenance, and education and related services; business management, consulting, and managed information technology services for community healthcare enterprises. Additionally, it provides Software as a Service based healthcare revenue cycle management solutions; system implementation and training services; and forms and office supplies. It serves community hospitals and physician clinics, skilled nursing and assisted living facilities, and small specialty hospitals. Computer Programs and Systems, Inc. was founded in 1979 and is based in Mobile, Alabama.
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