Financial Comparison: Formula Systems (1985) (NASDAQ:FORTY) versus TruBridge (NASDAQ:TBRG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Formula Systems (1985)	2.44%	5.17%	2.33%
TruBridge	-13.49%	10.33%	5.23%

Institutional and Insider Ownership

34.8% of Formula Systems (1985) shares are held by institutional investors. Comparatively, 88.6% of TruBridge shares are held by institutional investors. 23.3% of Formula Systems (1985) shares are held by insiders. Comparatively, 3.6% of TruBridge shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Formula Systems (1985) and TruBridge, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Formula Systems (1985)	0	0	0	0	N/A
TruBridge	0	0	2	0	3.00

TruBridge has a consensus price target of $18.50, suggesting a potential upside of 116.88%. Given TruBridge’s higher probable upside, analysts clearly believe TruBridge is more favorable than Formula Systems (1985).

Volatility & Risk

Formula Systems (1985) has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, TruBridge has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Earnings & Valuation

This table compares Formula Systems (1985) and TruBridge’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Formula Systems (1985)	$2.62 billion	0.45	$64.01 million	$4.13	18.60
TruBridge	$339.43 million	0.37	-$44.76 million	($3.15)	-2.71

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

Summary

Formula Systems (1985) beats TruBridge on 8 of the 13 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 TruBridge

TruBridge, Inc. provides healthcare solutions and services for community hospitals, clinics, and other healthcare systems in the United States and internationally. The company operates in three segments: Revenue Cycle Management (RCM), Electronic Health Record (HER), and Patient Engagement. It focuses on providing RCM solutions for care settings, regardless of primary healthcare information solutions provider along with business management, consulting, managed IT services, and analytics and business intelligence. The company provides acute care solutions and related services for community hospitals, and physician clinics; and patient engagement and empowerment technology solutions to improve patient outcomes and engagement strategies with care providers. In addition, it offers patient liability estimates eligibility verification, claim scrubbing and submission, remittance management, denial/audit management, and contract management; and offers RCM services, such as accounts receivable management, private pay service, medical coding, revenue cycle consulting, and other additional insurance and patient billing services. Further, it offers consulting and business management services; managed IT services; encoder solutions; patient management; financial accounting; clinical; patient care; and enterprise applications. Additionally, it offers TruBridge HER platform, including total system support, national client conference, continuing education, software releases, hardware replacement, cloud electronic health record, forms and supplies, and public cloud infrastructure services; post-acute care software systems, and support and maintenance services; and InstantPHR, an interactive portal and CHBase which funnels data from multiple sources into one platform. The company was formerly known as Computer Programs and Systems, Inc. and changed its name to TruBridge, Inc. in March 2024. TruBridge, Inc. was founded in 1979 and is headquartered in Mobile, Alabama.