Innodata (NASDAQ:INOD – Get Free Report) and Formula Systems (1985) (NASDAQ:FORTY – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.
Institutional and Insider Ownership
30.8% of Innodata shares are held by institutional investors. Comparatively, 34.8% of Formula Systems (1985) shares are held by institutional investors. 12.2% of Innodata shares are held by insiders. Comparatively, 23.3% of Formula Systems (1985) shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
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Valuation & Earnings
This table compares Innodata and Formula Systems (1985)”s gross revenue, earnings per share (EPS) and valuation.
Formula Systems (1985) has higher revenue and earnings than Innodata. Formula Systems (1985) is trading at a lower price-to-earnings ratio than Innodata, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Innodata has a beta of 2.58, meaning that its stock price is 158% 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.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Innodata and Formula Systems (1985), as reported by MarketBeat.com.
Innodata presently has a consensus price target of $55.00, suggesting a potential downside of 12.08%. Given Innodata’s stronger consensus rating and higher possible upside, research analysts plainly believe Innodata is more favorable than Formula Systems (1985).
Profitability
This table compares Innodata and Formula Systems (1985)’s net margins, return on equity and return on assets.
Summary
Innodata beats Formula Systems (1985) on 9 of the 14 factors compared between the two stocks.
About Innodata
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Innodata Inc. operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services. This segment also provides a range of data engineering support services, including data transformation, data curation, data hygiene, data consolidation, data extraction, data compliance, and master data management. The Synodex segment offers an industry platform that transforms medical records into useable digital data with its proprietary data models or client data models. The Agility segment provides an industry platform that offers marketing communications and public relations professionals to target and distribute content to journalists and social media influencers; and to monitor and analyze global news channels, such as print, web, radio, and TV, as well as social media channels. It serves banking, insurance, financial services, technology, digital retailing, and information/media sectors through its professional staff, senior management, and direct sales personnel. The company was formerly known as Innodata Isogen, Inc. and changed its name to Innodata Inc. in June 2012. Innodata Inc. was incorporated in 1988 and is headquartered in Ridgefield Park, New Jersey.
About Formula Systems (1985)
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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.