Analyzing Unisys (UIS) and Agilysys (AGYS)

Unisys (NYSE: UIS) and Agilysys (NASDAQ:AGYS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Unisys and Agilysys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unisys 0.31% -10.83% 6.58%
Agilysys -6.56% -7.63% -5.28%

Risk & Volatility

Unisys has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Agilysys has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.

Valuation & Earnings

This table compares Unisys and Agilysys’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Unisys $2.74 billion 0.25 -$65.30 million $2.42 5.64
Agilysys $127.36 million 2.82 -$8.35 million ($0.37) -41.78

Agilysys has lower revenue, but higher earnings than Unisys. Agilysys is trading at a lower price-to-earnings ratio than Unisys, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

85.9% of Agilysys shares are held by institutional investors. 2.2% of Unisys shares are held by insiders. Comparatively, 34.7% of Agilysys shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Unisys and Agilysys, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unisys 0 3 2 0 2.40
Agilysys 0 0 0 0 N/A

Unisys currently has a consensus target price of $12.00, suggesting a potential downside of 12.09%. Given Unisys’ higher possible upside, equities analysts plainly believe Unisys is more favorable than Agilysys.

Summary

Unisys beats Agilysys on 7 of the 12 factors compared between the two stocks.

Unisys Company Profile

Unisys Corporation provides information technology services worldwide. It operates in two segments, Services and Technology. The Services segment provides cloud and infrastructure services, application services, and business process outsourcing services. The Technology segment designs and develops software, hardware, and other related products. It offers a range of data-center, infrastructure management, and cloud computing services for clients to virtualize and automate data-center environments. This segment also provides industry application products, which allow law enforcement agencies to share critical investigative intelligence and integrated child support case management tools; travel and transportation companies to manage freight and distribution and leverage predictive analytics; and life sciences and healthcare companies to manage medical devices and visibility over the pharmaceutical supply chain, as well as offers financial solutions to deliver banking. In addition, its products include Unisys ClearPath Forward hardware-independent software for high-volume enterprise computing; and Unisys Stealth security software, which enables trusted identities to access micro-segmented critical assets and safely communicate through secure and encrypted channels. The company serves customers in the government, commercial, and financial services markets through direct sales force, distributors, resellers, and alliance partners. Unisys Corporation was founded in 1886 and is based in Blue Bell, Pennsylvania.

Agilysys Company Profile

Agilysys, Inc., together with its subsidiaries, operates as a developer and marketer of hardware and software products and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. The company offers point-of-sale, property management, reservation and table management, inventory and procurement, workforce management, analytics, document management, and mobile and wireless solutions to streamline operations, and enhance efficiency and guest experience. It also provides support and maintenance of software and hardware products, and subscription services; and professional services. Agilysys, Inc. serves various sectors, including gaming; hotels, resorts, and cruise; foodservice management; and restaurants, universities, stadia, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1963 and is headquartered in Alpharetta, Georgia.

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