Analyzing Technology Solutions (OTCMKTS:TSCC) & Formula Systems (1985) (NASDAQ:FORTY)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Formula Systems (1985)	$3.02 billion	0.77	$79.67 million	$4.54	33.37
Technology Solutions	N/A	N/A	N/A	N/A	N/A

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

Risk and Volatility

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

Profitability

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

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

Analyst Ratings

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

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

Given Technology Solutions’ higher probable upside, analysts plainly believe Technology Solutions is more favorable than Formula Systems (1985).

Insider & Institutional Ownership

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

Summary

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

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.

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.