Head to Head Review: Ciber (OTCMKTS:CBRI) and Formula Systems (1985) (NASDAQ:FORTY)

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

Institutional and Insider Ownership

34.8% of Formula Systems (1985) shares are owned by institutional investors. 23.3% of Formula Systems (1985) shares are owned by insiders. Comparatively, 9.2% of Ciber shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Formula Systems (1985)	$2.76 billion	N/A	$79.67 million	$4.54	37.29
Ciber	N/A	N/A	N/A	N/A	N/A

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

Analyst Recommendations

This is a breakdown of recent recommendations for Formula Systems (1985) and Ciber, 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
Ciber	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Formula Systems (1985)	2.49%	4.55%	2.10%
Ciber	N/A	N/A	N/A

Volatility and Risk

Formula Systems (1985) has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Ciber has a beta of -1.6, indicating that its share price is 260% less volatile than the S&P 500.

Summary

Formula Systems (1985) beats Ciber on 8 of the 8 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 Ciber

CMTSU Liquidation, Inc. operates as an information technology (IT) service company worldwide. It operates as an independent software vendor or channel partner; and provides project management, application and technical consulting, and database administration for implementation projects and managed-services. The company also offers managed services; and enterprise application, IT strategy, and business process consultancy services, as well as project planning, systems implementation and integration, training and change management, and application management. Its application development and management/staffing services provide analysis, design, development, testing and quality assurance, implementation, and maintenance of its client’s business applications. In addition, the company offers staffing services covering software development lifecycle, as well as steady-state operations; and sells various IT hardware and software products. It serves Global 2000 blue-chip companies in industries, such as manufacturing, retail, education, healthcare and life sciences, energy and utilities, financial services, and the public sector. The company was formerly known as Ciber, Inc. and changed its name to CMTSU Liquidation, Inc. in June 2017. CMTSU Liquidation, Inc. was founded in 1974 and is based in Denver, Colorado. On April 9, 2017, CMTSU Liquidation, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the District of Delaware. The plan was later approved as Chapter 11 liquidation on December 20, 2018.