Innovative Solutions & Support (NASDAQ:ISSC) and Formula Systems (1985) (NASDAQ:FORTY) are both small-cap aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Earnings & Valuation

This table compares Innovative Solutions & Support and Formula Systems (1985)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innovative Solutions & Support $13.85 million 5.54 -$3.65 million N/A N/A
Formula Systems (1985) $1.49 billion 0.47 $32.21 million N/A N/A

Formula Systems (1985) has higher revenue and earnings than Innovative Solutions & Support.

Dividends

Formula Systems (1985) pays an annual dividend of $0.47 per share and has a dividend yield of 1.0%. Innovative Solutions & Support does not pay a dividend.

Risk and Volatility

Innovative Solutions & Support has a beta of -0.21, meaning that its stock price is 121% less volatile than the S&P 500. Comparatively, Formula Systems (1985) has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Institutional & Insider Ownership

23.8% of Innovative Solutions & Support shares are held by institutional investors. Comparatively, 0.1% of Formula Systems (1985) shares are held by institutional investors. 27.7% of Innovative Solutions & Support shares are held by company insiders. Comparatively, 23.3% of Formula Systems (1985) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Innovative Solutions & Support and Formula Systems (1985)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innovative Solutions & Support -7.31% -3.24% -2.95%
Formula Systems (1985) 2.16% 3.73% 1.83%

Analyst Ratings

This is a summary of recent recommendations and price targets for Innovative Solutions & Support and Formula Systems (1985), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innovative Solutions & Support 0 0 0 0 N/A
Formula Systems (1985) 0 0 0 0 N/A

Summary

Formula Systems (1985) beats Innovative Solutions & Support on 7 of the 10 factors compared between the two stocks.

About Innovative Solutions & Support

Innovative Solutions and Support, Inc., a systems integrator, designs, manufactures, sells, and services flight guidance and cockpit display systems. It offers flat panel display systems that could replicate the display of analog or digital displays on one screen and could replace existing displays in legacy aircraft, as well as used for security monitoring on-board aircraft and as tactical workstations on military aircraft; flight management systems that complement the IS&S flat panel display system upgrade for commercial air transport aircraft; and integrated standby units, which incorporate the measurement and display of attitude, altitude, airspeed, and navigation data into a single standby/backup navigation instrument for military, commercial air transport, and corporate/general aviation applications. The company also provides digital air data computers, which calculate various air data parameters, such as altitude, airspeed, vertical speed, angle of attack, and other information derived from the measure of air pressure; integrated air data computers and display units that calculate and convey air data information; altitude displays, which convey aircraft altitude measurements; airspeed displays, which convey various types of airspeed measurements; and altitude alerters that allow pilots to select a desired cruising altitude and provide warnings to pilots when an unacceptable deviation occurs. In addition, it offers engine and fuel displays that convey information related to fuel and oil levels, and engine activity, such as oil and hydraulic pressure and temperature; integrated global navigation systems; and utilities management systems. The company serves commercial air transport carriers and corporate/general aviation companies, Department of Defense and its commercial contractors, aircraft operators, aircraft modification centers, foreign militaries, and original equipment manufacturers. The company was founded in 1988 and is based in Exton, Pennsylvania.

About Formula Systems (1985)

Formula Systems (1985) Ltd., through its subsidiaries, provides software, proprietary and non-proprietary software, and software product marketing and support services. The company offers computer and telecommunication infrastructure solutions; computer solutions to computer and communications infrastructures; cloud computing solutions; database and big data services; 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 professional training courses and advanced professional studies. It also markets and sells computers and peripheral equipment to business customers. In addition, the company offers life, pension, and annuities platforms/solutions, including Sapiens ALIS, LifeSuite, Life Portraits, LifeApply, Sapiens INSIGHT, and Sapiens Closed Books; property and casualty/general insurance platforms/solutions, such as Sapiens IDIT, Adaptik Policy, Adaptik Billing, Stream Claim, Sapiens Stingray, PowerSuite, and CompSuite; and reinsurance software solutions comprising Sapiens Reinsurance, Freedom Reinsurance System, and Universal Reinsurance System. Further, it provides financial and compliance solutions that include eFreedom Annual Statement, PRO Financial General Ledger and Accounts Payable, Preferred Tax Enterprise Financial applications, Insurance Financial reporting, and Power2Play; Sapiens DECISION, a decision management platform; and technology-based solutions and digital insurance suites. Additionally, the company offers application development and business process integration platforms; vertical software solutions; vendor of software services and IT outsourcing software services; and professionals in various areas, as well as develops on-premise payroll software solutions. The company was founded in 1985 and is headquartered in Or Yehuda, Israel.

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