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Unisys Unit Collaborates With CMA to Strengthen Portfolio

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Unisys Corporation (UIS - Free Report) announced that its unit Unisys Federal has entered into an agreement with Computer Marketing Associates, Inc. (“CMA”). Per the collaboration, both the companies will jointly offer the award-winning Unisys Stealth suite of security software to U.S. federal government agencies.

CMA is a provider of business systems integration and resells cybersecurity, cloud, data analytics and integrated IT infrastructure solutions to the federal government.

What is Stealth?  

The Stealth software provides extra protection to data and applications, which utilizes encryption and identity-driven micro-segmentation techniques. Even if rivals break into one micro-segment, they would not be able to move across to other parts of the enterprise environment.

The Collaboration

Leading companies across various industries have critical needs for advanced cyber security solutions to help protect their eco-systems in the cloud. The collaboration will help both Unisys and CMA to engage with clients, prospects and thought leaders as they demonstrate their joint technology solutions. In-addition, the companies are looking forward to advancing the technology and arriving at new sets of solutions.

This agreement has paved the way for all federal agencies to gain access to this critically important solution. Stealth provides adaptive protection through the application of micro-segmentation technology across entire extended enterprises, securing users, data, applications and systems from cyber threats. This software enables federal agencies to reduce risks and secure their systems.

This deal makes Stealth available to different federal government agencies through two major government-wide contract vehicles: NASA's Solutions for Enterprise-Wide Procurement V small business contract and the NIH CIO-CS contract. Both the contracts are particularly suitable for streamlining and acquisition of critical technology solutions and services. In addition, CMA will offer Unisys professional services to implement Stealth solutions via these contracts.

Price Performance Compared to Industry

Unisys has underperformed the industry, with an average year-to-date loss of 48.2% against a 21.5% gain for the latter. Despite such collaborations, the company continues to face stiff competition in the information services and technology marketplace from consulting and other professional services firms, systems integrators, outsourcing providers, infrastructure services providers, computer hardware manufacturers and software providers. Consequently, Unisys has to continually invest in new technologies which act as value drivers that could provide a hedge against stiff competition. However, these incremental investments increase operating expenses, thus squeezing margins and negatively impacting profitability.

Zacks Rank & Stocks to Consider

Unisys currently carries a Zack Rank #5 (Strong Sell). Some better-ranked stocks in the industry are CSRA Inc. , CoStar Group, Inc. (CSGP - Free Report) and RELX NV . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CSRA has long-term earnings growth expectations of 10% and is currently trading at a forward P/E of 15.9x.

CoStar Grouphas long-term earnings growth expectations of 15% and is currently trading at a forward P/E of 63.3x.

RELX NVhas long-term earnings growth expectations of 5.5% and is currently trading at a forward P/E of 19.6x.

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