Modsys International (MDSYF) & Wipro (WIT) Critical Comparison

Modsys International (OTCMKTS:MDSYF) and Wipro (NYSE:WIT) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Dividends

Wipro pays an annual dividend of $0.01 per share and has a dividend yield of 0.2%. Modsys International does not pay a dividend. Wipro pays out 4.5% of its earnings in the form of a dividend.

Profitability

This table compares Modsys International and Wipro’s 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
Wipro 15.39% 17.24% 11.44%

Earnings and Valuation

This table compares Modsys International and Wipro’s gross revenue, earnings per share 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
Wipro $8.47 billion 3.13 $1.30 billion $0.22 20.09

Wipro has higher revenue and earnings than Modsys International.

Analyst Ratings

This is a breakdown of current ratings and price targets for Modsys International and Wipro, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Modsys International 0 0 0 0 N/A
Wipro 5 3 0 0 1.38

Wipro has a consensus price target of $4.77, suggesting a potential upside of 7.81%. Given Wipro’s higher possible upside, analysts clearly believe Wipro is more favorable than Modsys International.

Institutional & Insider Ownership

1.8% of Wipro shares are owned by institutional investors. 30.8% of Modsys International shares are owned by insiders. Comparatively, 1.0% of Wipro shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Modsys International has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Wipro has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Summary

Wipro beats Modsys International on 10 of the 12 factors compared between the two stocks.

About Modsys International

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.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services (BPS) company worldwide. The company's IT Services segment offers a range of IT and IT-enabled services, including digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, infrastructure services, analytics services, BPS, research and development services, and hardware and software design services to various enterprises. It serves customers in various industry verticals, such as banking, financial services, and insurance; health business; consumer business; energy, natural resources, and utilities; manufacturing; technology; and communications. The company's IT Products segment distributes third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. The company has research collaboration agreements with Tel Aviv University for core and applied research in image and text analytics using deep learning and sparse representation models and techniques; and IISc on technologies for autonomous vehicles. Wipro Limited was founded in 1945 and is headquartered in Bengaluru, India.

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