WallStSmart

Formula Systems 1985 Ltd ADR (FORTY)vsInfosys Ltd ADR (INFY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Infosys Ltd ADR generates 594% more annual revenue ($20.30B vs $2.93B). FORTY leads profitability with a 21.6% profit margin vs 16.4%. INFY appears more attractively valued with a PEG of 1.85. FORTY earns a higher WallStSmart Score of 61/100 (C+).

FORTY

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 3.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.22

INFY

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 7.3Quality: 8.0
Piotroski: 4/9Altman Z: 4.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FORTYSignificantly Overvalued (-67.1%)

Margin of Safety

-67.1%

Fair Value

$79.89

Current Price

$119.20

$39.31 premium

UndervaluedFair: $79.89Overvalued
INFYUndervalued (+83.8%)

Margin of Safety

+83.8%

Fair Value

$97.19

Current Price

$10.82

$86.37 discount

UndervaluedFair: $97.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FORTY4 strengths · Avg: 9.3/10
Return on EquityProfitability
44.8%10/10

Every $100 of equity generates 45 in profit

EPS GrowthGrowth
54.7%10/10

Earnings expanding 54.7% YoY

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

INFY5 strengths · Avg: 9.2/10
Return on EquityProfitability
34.6%10/10

Every $100 of equity generates 35 in profit

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5710/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.5x8/10

Attractively priced relative to earnings

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

Areas to Watch

FORTY4 concerns · Avg: 3.0/10
P/E RatioValuation
27.4x4/10

Moderate valuation

Market CapQuality
$1.98B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.072/10

Expensive relative to growth rate

INFY3 concerns · Avg: 4.0/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Price/BookValuation
9.1x4/10

Trading at 9.1x book value

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull Case : FORTY

The strongest argument for FORTY centers on Return on Equity, EPS Growth, Profit Margin. Profitability is solid with margins at 21.6% and operating margin at 9.2%.

Bull Case : INFY

The strongest argument for INFY centers on Return on Equity, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 16.4% and operating margin at 21.2%.

Bear Case : FORTY

The primary concerns for FORTY are P/E Ratio, Market Cap, Piotroski F-Score.

Bear Case : INFY

The primary concerns for INFY are PEG Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

FORTY profiles as a mature stock while INFY is a value play — different risk/reward profiles.

FORTY carries more volatility with a beta of 0.18 — expect wider price swings.

FORTY is growing revenue faster at 5.3% — sustainability is the question.

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FORTY scores higher overall (61/100 vs 59/100), backed by strong 21.6% margins. INFY offers better value entry with a 83.8% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Formula Systems 1985 Ltd ADR

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Formula Systems (1985) Ltd., provides software, proprietary and non-proprietary software, and software product marketing and support services in Israel and internationally. The company is headquartered in Or Yehuda, Israel.

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Infosys Ltd ADR

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Infosys Limited offers next generation digital consulting, technology, outsourcing and services in North America, Europe, India and internationally. The company is headquartered in Bengaluru, India.

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