Switch Inc. (SWCH)’s Financial Results Comparing With Formula Systems (1985) Ltd. (NASDAQ:1985 Ltd)

Both Switch Inc. (NYSE:SWCH) and Formula Systems (1985) Ltd. (NASDAQ:1985 Ltd) compete on a level playing field in the Information Technology Services industry. We will evaluate their performance with regards to profitability, analyst recommendations, risk, dividends, institutional ownership, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Switch Inc. 15 4.36 44.82M 0.08 171.77
Formula Systems (1985) Ltd. 68 0.00 9.42M 2.29 24.53

We can see in table 1 the earnings per share (EPS), top-line revenue and valuation of Switch Inc. and Formula Systems (1985) Ltd. Formula Systems (1985) Ltd. appears to has higher revenue and earnings than Switch Inc. Currently more expensive of the two stocks is the business with a higher price-to-earnings ratio. Switch Inc. is trading at a higher price-to-earnings ratio than Formula Systems (1985) Ltd., indicating that it is presently more expensive of the two stocks.

Profitability

Table 2 hightlights the net margins, return on assets and return on equity of the two companies.

Net Margins Return on Equity Return on Assets
Switch Inc. 294,674,556.21% 3% 0.3%
Formula Systems (1985) Ltd. 13,916,383.51% 9.4% 2.1%

Liquidity

The Current Ratio and a Quick Ratio of Switch Inc. are 1.5 and 1.5. Competitively, Formula Systems (1985) Ltd. has 1.5 and 1.5 for Current and Quick Ratio. ‘s better ability to pay short and long-term obligations than .

Analyst Ratings

The table given features the ratings and recommendations for Switch Inc. and Formula Systems (1985) Ltd.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Switch Inc. 0 0 3 3.00
Formula Systems (1985) Ltd. 0 0 0 0.00

The upside potential is 17.72% for Switch Inc. with average target price of $18.

Institutional and Insider Ownership

Institutional investors held 62.1% of Switch Inc. shares and 9.9% of Formula Systems (1985) Ltd. shares. Insiders held roughly 3.1% of Switch Inc.’s shares. Insiders Comparatively, held 68.9% of Formula Systems (1985) Ltd. shares.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Switch Inc. -1.31% 3.04% 25.76% 65.89% 4.06% 93.86%
Formula Systems (1985) Ltd. 2.52% 15.74% 50.96% 48.03% 37.13% 57.83%

For the past year Switch Inc. has stronger performance than Formula Systems (1985) Ltd.

Summary

On 8 of the 13 factors Switch Inc. beats Formula Systems (1985) Ltd.

Switch, Inc., through its subsidiary, Switch, Ltd., provides colocation space and related services to technology and digital media companies, cloud and managed service providers, financial institutions, government agencies, and telecommunications providers that conduct critical business on the Internet. It develops and operates data centers in Nevada and Michigan. The company was founded in 2000 and is headquartered in Las Vegas, Nevada.

Formula Systems (1985) Ltd. provides software services, proprietary and non-proprietary software solutions, and software product marketing and support services. It offers computer and telecommunication infrastructure solutions; computer solutions to computer and communications infrastructures; cloud computing solutions; services regarding database services and Big data services; 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. The company also markets and sells computers and peripheral equipment to business customers; and operates a network of high-tech training and instruction centers. In addition, it offers Sapiens ALIS, a software solution for individual, group, and worksite insurance products; Sapiens Retirement Services for record-keeping management; Sapiens Closed Books, a solution to administer policies and claims relating to closed books of business; and Sapiens INSIGHT that enables life and pension carriers to handle a range of activities and regulations. Further, the company provides Sapiens IDIT for general insurance carriers; Sapiens Reinsurance, a business and accounting solution to support reinsurance contracts and activities; Sapiens Stingray, a solution for policy, billing, claims, and reinsurance administration; and Sapiens DECISION, a business decision management solution. Additionally, it provides proprietary application development and business process integration platforms; and supplies professionals in the areas of accounting and finance, administrative, customer service, clinical, scientific and healthcare, engineering, manufacturing and operations, human resources, IT technology, LI/MFG, and marketing and sales. The company was founded in 1985 and is headquartered in Or Yehuda, Israel.

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