Formula Systems 1985 Ltd ADR (FORTY)vsSonos Inc (SONO)
FORTY
Formula Systems 1985 Ltd ADR
$141.99
+7.18%
TECHNOLOGY · Cap: $2.09B
SONO
Sonos Inc
$14.84
+0.07%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Formula Systems 1985 Ltd ADR generates 83% more annual revenue ($2.63B vs $1.44B). FORTY leads profitability with a 23.1% profit margin vs -1.2%. FORTY earns a higher WallStSmart Score of 58/100 (C).
FORTY
Buy58
out of 100
Grade: C
SONO
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+29.3%
Fair Value
$188.92
Current Price
$141.99
$46.93 discount
Margin of Safety
+42.1%
Fair Value
$28.48
Current Price
$14.84
$13.64 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 2645.0% YoY
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 87.5% YoY
Areas to Watch
2.4% revenue growth
ROE of 6.9% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -3.9% — below average capital efficiency
Revenue declined 0.9%
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull Case : FORTY
The strongest argument for FORTY centers on EPS Growth, Profit Margin, Price/Book. Profitability is solid with margins at 23.1% and operating margin at 5.9%.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : FORTY
The primary concerns for FORTY are Revenue Growth, Return on Equity, Piotroski F-Score. A P/E of 59.0x leaves little room for execution misses.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
FORTY profiles as a value stock while SONO is a turnaround play — different risk/reward profiles.
SONO carries more volatility with a beta of 2.00 — expect wider price swings.
FORTY is growing revenue faster at 2.4% — sustainability is the question.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FORTY scores higher overall (58/100 vs 42/100), backed by strong 23.1% margins. SONO offers better value entry with a 42.1% margin of safety. Both earn "Buy" and "Hold" 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.
Visit Website →Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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