Formula Systems (1985) (NASDAQ:FORTY) and Society Pass (NASDAQ:SOPA) Financial Comparison

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

Institutional & Insider Ownership

34.8% of Formula Systems (1985) shares are owned by institutional investors. Comparatively, 3.1% of Society Pass shares are owned by institutional investors. 23.3% of Formula Systems (1985) shares are owned by company insiders. Comparatively, 5.5% of Society Pass shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Formula Systems (1985)	21.57%	4.38%	2.13%
Society Pass	-145.99%	-343.41%	-39.70%

Volatility and Risk

Formula Systems (1985) has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Society Pass has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Earnings and Valuation

This table compares Formula Systems (1985) and Society Pass”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)	$2.63 billion	0.70	$606.48 million	$39.83	2.99
Society Pass	$7.23 million	0.08	-$10.23 million	($2.43)	-0.03

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

Analyst Ratings

This is a summary of current recommendations for Formula Systems (1985) and Society Pass, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Formula Systems (1985)	0	1	0	0	2.00
Society Pass	1	1	1	1	2.50

Society Pass has a consensus target price of $22.50, indicating a potential upside of 29,505.26%. Given Society Pass’ stronger consensus rating and higher possible upside, analysts plainly believe Society Pass is more favorable than Formula Systems (1985).

Summary

Formula Systems (1985) beats Society Pass on 10 of the 15 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 Society Pass

Society Pass Incorporated acquires and operates fintech and e-commerce platforms and mobile applications for consumers and merchants in Singapore, Vietnam, Indonesia, Philippines, the United States, Malaysia, Hong Kong, and Thailand. It operates through Online Grocery and Food and Groceries Deliveries, Digital marketing, Online ticketing and reservation, Telecommunications Reseller, e-Commerce, and Merchant Point of Sale segments. The company operates Leflair, an online lifestyle platform that offers services and products, such as fashion and accessories, beauty and personal care, and home and lifestyle; an online food delivery service under the Handycart brand name; and an online grocery delivery service under the Pushkart brand name. It also sells hardware and software to merchant; local mobile phone and global internet data plans; and domestic and overseas air ticket, and global hotel reservations, as well as offers digital marketing services. The company was formerly known as Food Society, Inc. and changed its name to Society Pass Incorporated in October 2018. Society Pass Incorporated was incorporated in 2018 and is headquartered in Singapore.