Head-To-Head Analysis: Formula Systems (1985) (NASDAQ:FORTY) & Bit Digital (NASDAQ:BTBT)

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

Institutional and Insider Ownership

34.8% of Formula Systems (1985) shares are owned by institutional investors. Comparatively, 47.7% of Bit Digital shares are owned by institutional investors. 23.3% of Formula Systems (1985) shares are owned by company insiders. Comparatively, 2.0% of Bit Digital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Formula Systems (1985) and Bit Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Formula Systems (1985)	0	1	0	0	2.00
Bit Digital	1	1	4	1	2.71

Bit Digital has a consensus target price of $4.38, suggesting a potential upside of 184.09%. Given Bit Digital’s stronger consensus rating and higher probable upside, analysts plainly believe Bit Digital is more favorable than Formula Systems (1985).

Earnings & Valuation

This table compares Formula Systems (1985) and Bit Digital”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)	$2.63 billion	0.69	$606.48 million	$39.83	2.97
Bit Digital	$113.56 million	4.89	-$80.32 million	($1.06)	-1.45

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

Risk and Volatility

Formula Systems (1985) has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Bit Digital has a beta of 3.84, suggesting that its share price is 284% more volatile than the S&P 500.

Profitability

This table compares Formula Systems (1985) and Bit Digital’s 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%
Bit Digital	-237.19%	-10.66%	-6.81%

Summary

Formula Systems (1985) beats Bit Digital on 8 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 Bit Digital

Bit Digital, Inc., together with its subsidiaries, engages in the bitcoin mining business. It is also involved in the treasury management activities; and digital asset staking and digital asset mining businesses, as well as ethereum staking activities. In addition, it provides specialized cloud-infrastructure services for artificial intelligence applications. The company was formerly known as Golden Bull Limited and changed its name to Bit Digital, Inc. in September 2020. Bit Digital, Inc. was founded in 2015 and is headquartered in New York, New York.