Duos Technologies Group (NASDAQ:DUOT) vs. Formula Systems (1985) (NASDAQ:FORTY) Financial Survey

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Formula Systems (1985) and Duos Technologies Group, 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
Duos Technologies Group	0	2	2	0	2.50

Duos Technologies Group has a consensus price target of $24.50, suggesting a potential upside of 196.61%. Given Duos Technologies Group’s stronger consensus rating and higher probable upside, analysts clearly believe Duos Technologies Group is more favorable than Formula Systems (1985).

Volatility and Risk

Formula Systems (1985) has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Duos Technologies Group has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Insider and Institutional Ownership

34.8% of Formula Systems (1985) shares are held by institutional investors. Comparatively, 42.6% of Duos Technologies Group shares are held by institutional investors. 23.3% of Formula Systems (1985) shares are held by insiders. Comparatively, 3.5% of Duos Technologies Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Formula Systems (1985) and Duos Technologies Group’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%
Duos Technologies Group	158.99%	-11.88%	-9.85%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Formula Systems (1985)	$2.63 billion	0.72	$606.48 million	$39.83	3.08
Duos Technologies Group	$27.02 million	8.96	-$9.84 million	$0.99	8.34

Formula Systems (1985) has higher revenue and earnings than Duos Technologies Group. Formula Systems (1985) is trading at a lower price-to-earnings ratio than Duos Technologies Group, indicating that it is currently the more affordable of the two stocks.

Summary

Duos Technologies Group beats Formula Systems (1985) on 8 of the 14 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 Duos Technologies Group

Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. The company provides solutions, such as Centraco, an enterprise information management software platform that consolidates data and events from multiple sources into a unified and distributive user interface; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications. Its proprietary applications include Railcar Inspection Portal that provides freight and transit railroad customers and select government agencies the ability to conduct fully automated railcar inspections of trains while they are moving at full speed. It also develops Automated Logistics Information System, which automates gatehouse operations, as well as develops solutions for rail, trucking, aviation, and other vehicle-based processes. In addition, the company provides consulting services, including consulting and auditing; software licensing with optional hardware sales; customer service training; and maintenance support. The company operates its services under the duostech brand. The company is headquartered in Jacksonville, Florida.