Formula Systems 1985 Ltd ADR (FORTY)vsSonos Inc (SONO)
FORTY
Formula Systems 1985 Ltd ADR
$119.21
0.00%
TECHNOLOGY · Cap: $1.87B
SONO
Sonos Inc
$15.94
+1.34%
TECHNOLOGY · Cap: $2.07B
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 24.6x. FORTY earns a higher WallStSmart Score of 61/100 (C+).
FORTY
Buy61
out of 100
Grade: C+
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.6%
Fair Value
$80.14
Current Price
$119.21
$39.07 premium
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$15.94
$3.46 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
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
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 Market Cap, Piotroski F-Score, PEG Ratio.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. 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 1.88 — 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 47/100), 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.
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