Formula Systems 1985 Ltd ADR (FORTY)vsSonos Inc (SONO)
FORTY
Formula Systems 1985 Ltd ADR
$126.00
-8.86%
TECHNOLOGY · Cap: $1.80B
SONO
Sonos Inc
$15.08
-7.20%
TECHNOLOGY · Cap: $1.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Formula Systems 1985 Ltd ADR generates 88% more annual revenue ($2.75B vs $1.46B). FORTY leads profitability with a 22.7% profit margin vs 1.6%. FORTY trades at a lower P/E of 30.9x. FORTY earns a higher WallStSmart Score of 63/100 (C+).
FORTY
Buy63
out of 100
Grade: C+
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-79.8%
Fair Value
$74.26
Current Price
$126.00
$51.74 premium
Margin of Safety
-34.7%
Fair Value
$12.25
Current Price
$15.08
$2.83 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 45 in profit
Earnings expanding 82.8% YoY
Keeps 23 of every $100 in revenue as profit
19.2% revenue growth
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : FORTY
The strongest argument for FORTY centers on Price/Book, Return on Equity, EPS Growth. Profitability is solid with margins at 22.7% and operating margin at 11.1%. Revenue growth of 19.2% demonstrates continued momentum.
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 Market Cap, Return on Equity, Profit Margin. A P/E of 90.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
FORTY profiles as a growth 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.
FORTY is growing revenue faster at 19.2% — sustainability is the question.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FORTY scores higher overall (63/100 vs 45/100), backed by strong 22.7% margins and 19.2% revenue growth. 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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