DXC Technology Company. (DXC) vs Formula Systems (1985) Ltd. (FORTY)

DXC Technology Company. and Formula Systems (1985) Ltd. are both Information Technology Services companies. DXC Technology Company. and Formula Systems (1985) Ltd. are of similar size ($1.7B and $1.7B). Formula Systems (1985) Ltd. trades at the lower P/E: 2.8× against 14.6×. Formula Systems (1985) Ltd. grew revenue faster over the last twelve months: 41.0% against −2.42%. Formula Systems (1985) Ltd. has the higher net margin (21.6% vs 0.99%) and the higher return on invested capital (12.0% vs 5.28%). Both pay a dividend; Formula Systems (1985) Ltd. yields more (0.95% vs 0.73%). Across the 23 metrics below, Formula Systems (1985) Ltd. leads on 16 and DXC Technology Company. on 7.

Valuation

Metric DXC FORTY Information Technology Services median
P/E 14.59 2.79 14.63
P/S 0.14 0.60 1.13
P/B 0.52 0.99 2.10
Price to free cash flow 1.64 1.58 10.11
EV/EBITDA 2.10 5.64 8.56
EV/Sales 0.26 0.48 1.20
Earnings yield 6.85% 35.86% 4.56%
Free cash flow yield 61.06% 63.25% 4.37%

Profitability

Metric DXC FORTY Information Technology Services median
Gross margin 23.00% 19.83% 31.05%
Operating margin 3.30% 8.54% 3.30%
Net margin 0.99% 21.57% 2.09%
Free cash flow margin 8.48% 0.00% 0.00%
Return on equity 3.67% 0.00% 4.12%
Return on assets 0.94% 18.83% 0.61%
Return on invested capital 5.28% 11.98% 0.57%

Growth

Metric DXC FORTY Information Technology Services median
Revenue growth (TTM) (2.42%) 41.04% 7.12%
EPS growth (last fiscal year) (95.24%) 654.22% —
Revenue growth, 5-year CAGR (6.54%) 6.32% 7.71%
Net income growth, 5-year CAGR 0.00% 66.94% 0.00%

Health

Metric DXC FORTY Information Technology Services median
Debt to equity 1.05 0.31 0.45
Current ratio 1.41 1.48 1.66
Net debt to EBITDA 1.09 (2.40) 0.44

Dividend

Metric DXC FORTY Information Technology Services median
Dividend yield 0.73% 0.95% 1.21%
Payout ratio 0.00 0.30 0.00

Size

Metric DXC FORTY Information Technology Services median
Market cap 1.73b 1.73b 1.36b

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