Financial Survey: X3 (NASDAQ:XTKG) & Formula Systems (1985) (NASDAQ:FORTY)

Formula Systems (1985) (NASDAQ:FORTY) and X3 (NASDAQ:XTKG) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Profitability

This table compares Formula Systems (1985) and X3’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Formula Systems (1985)	2.53%	5.21%	2.45%
X3	N/A	N/A	N/A

Institutional & Insider Ownership

34.8% of Formula Systems (1985) shares are held by institutional investors. Comparatively, 1.9% of X3 shares are held by institutional investors. 23.3% of Formula Systems (1985) shares are held by company insiders. Comparatively, 23.9% of X3 shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Formula Systems (1985) has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, X3 has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Formula Systems (1985) and X3, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Formula Systems (1985)	0	0	0	0	N/A
X3	0	0	0	0	N/A

Earnings and Valuation

This table compares Formula Systems (1985) and X3″s 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	0.44	$64.01 million	$4.22	17.75
X3	$16.83 million	0.01	-$109.60 million	N/A	N/A

Formula Systems (1985) has higher revenue and earnings than X3.

Summary

Formula Systems (1985) beats X3 on 7 of the 9 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 X3

X3 Holdings Co Ltd. provides technology solutions and services worldwide. The company offers Global Trade Platform, a digital platform for trading partners, service providers, and government authorities. It also engages in bitcoin cryptomining operations, renewable energy projects, and agriculture technologies and trading. The company was formerly known as Powerbridge Technologies Co., Ltd. and changed its name to X3 Holdings Co Ltd. in January 2024. X3 Holdings Co Ltd. was founded in 1997 and is headquartered in Singapore.