Modsys International (OTCMKTS:MDSYF) and RealNetworks (NASDAQ:RNWK) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

Modsys International has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, RealNetworks has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

46.0% of RealNetworks shares are owned by institutional investors. 30.8% of Modsys International shares are owned by insiders. Comparatively, 39.5% of RealNetworks shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Modsys International and RealNetworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Modsys International N/A N/A N/A
RealNetworks -20.46% -45.29% -24.27%

Valuation & Earnings

This table compares Modsys International and RealNetworks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Modsys International $10.98 million 1.93 -$12.18 million N/A N/A
RealNetworks $69.51 million 0.89 -$24.99 million N/A N/A

Modsys International has higher earnings, but lower revenue than RealNetworks.

Analyst Ratings

This is a summary of current recommendations and price targets for Modsys International and RealNetworks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Modsys International 0 0 0 0 N/A
RealNetworks 0 0 0 0 N/A

Summary

Modsys International beats RealNetworks on 5 of the 9 factors compared between the two stocks.

Modsys International Company Profile

ModSys International Ltd. develops and markets enterprise legacy information technology (IT) modernization solutions and services worldwide. Its technologies and services allow businesses to migrate from their legacy mainframe and distributed IT infrastructures to modern environments and programming languages. The company's activities include the conversion of legacy mainframe applications written in COBOL, CA GEN, Natural, and PL/1 to Java and C# code; conversion of legacy databases, such as IDMS, ADABAS, VSAM, IMS, and ICL to SQL Server, Oracle, and DB2 environments; and selling data mirroring software that allows companies to integrate legacy databases with modern relational databases on a routine/ongoing basis enabling data share across an organization without migration. It also provides professional services comprising project management of migrations, understanding and mapping of the applications, testing, remediation, and ongoing monitoring and management of the environments. ModSys International Ltd. offers its modernization solutions directly to customers, as well as through its strategic partners, including system integrators and other software vendors. The company was formerly known as BluePhoenix Solutions Ltd. and changed its name to ModSys International Ltd. in January 2015. ModSys International Ltd. was founded in 1987 and is headquartered in Dallas, Texas.

RealNetworks Company Profile

RealNetworks, Inc. provides network-delivered digital media applications and services to manage, play, and share digital media. Its Consumer Media segment offers RealPlayer media player software, which enables consumers to discover, play, download, manage and edit digital video, stream audio and video, download and save photos and videos from the Web, transfer and share content on social networks, and edit their own photo and video content. This segment also licenses its technology to electronic equipment, microchip, and integrated circuit manufacturers. The company's Mobile Services segment provides digital media services to mobile and online service providers as software as a service offerings, which include RealTimes, a photo and video sharing platform, offers to wireless carriers for integration in their hosted cloud solutions; Kontxt, a text message management, anti-spam, and classification product; ringback tone that enables callers to hear subscriber-selected music or messages instead of the traditional electronic ringing; intercarrier messaging services; and business intelligence, and subscriber management and billing for the carriers. Its Games segment develops, publishes, and distributes casual games, including time-management, board, card, puzzle, word, and hidden-object games. It offers its casual games through mobile devices, digital downloads, and subscription play. The company also develops and markets software products and services that enable the creation, distribution, and consumption of digital media, including audio and video. The company provides its products and services through direct and indirect channels comprising public relations, trade shows, events, and speaking opportunities; online channels; third party distribution partners; and third-party distribution channels, such as application storefronts, search engines, online portals, and content publishers. RealNetworks, Inc. was founded in 1994 and is headquartered in Seattle, Washington.

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