Formula Systems 1985 Ltd ADR (FORTY)vsSonos Inc (SONO)
FORTY
Formula Systems 1985 Ltd ADR
$119.20
0.00%
TECHNOLOGY · Cap: $1.98B
SONO
Sonos Inc
$15.53
-3.36%
TECHNOLOGY · Cap: $1.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Formula Systems 1985 Ltd ADR generates 96% more annual revenue ($2.93B vs $1.49B). FORTY leads profitability with a 21.6% profit margin vs 3.8%. FORTY trades at a lower P/E of 27.4x. FORTY earns a higher WallStSmart Score of 61/100 (C+).
FORTY
Buy61
out of 100
Grade: C+
SONO
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-67.1%
Fair Value
$79.89
Current Price
$119.20
$39.31 premium
Margin of Safety
-32.1%
Fair Value
$12.49
Current Price
$15.53
$3.04 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 45 in profit
Earnings expanding 54.7% YoY
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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 : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : FORTY
The primary concerns for FORTY are P/E Ratio, Market Cap, Piotroski F-Score.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
FORTY profiles as a mature stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
SONO is growing revenue faster at 8.8% — sustainability is the question.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FORTY scores higher overall (61/100 vs 48/100), backed by strong 21.6% margins. 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.
Compare with Other INFORMATION TECHNOLOGY SERVICES Stocks
Want to dig deeper into these stocks?