WallStSmart

Formula Systems 1985 Ltd ADR (FORTY)vsZepp Health Corp (ZEPP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Formula Systems 1985 Ltd ADR generates 915% more annual revenue ($2.63B vs $258.90M). FORTY leads profitability with a 23.1% profit margin vs -15.5%. FORTY earns a higher WallStSmart Score of 58/100 (C).

FORTY

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 4.0Quality: 5.3
Piotroski: 3/9

ZEPP

Hold

41

out of 100

Grade: D

Growth: 4.7Profit: 2.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FORTYUndervalued (+29.3%)

Margin of Safety

+29.3%

Fair Value

$188.68

Current Price

$132.48

$56.20 discount

UndervaluedFair: $188.68Overvalued
ZEPPUndervalued (+48.6%)

Margin of Safety

+48.6%

Fair Value

$46.70

Current Price

$17.47

$29.23 discount

UndervaluedFair: $46.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FORTY3 strengths · Avg: 9.7/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
2645.0%10/10

Earnings expanding 2645.0% YoY

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

ZEPP2 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
43.0%10/10

Revenue surging 43.0% year-over-year

Areas to Watch

FORTY4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.072/10

Expensive relative to growth rate

ZEPP4 concerns · Avg: 2.0/10
Market CapQuality
$247.54M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-17.2%2/10

ROE of -17.2% — below average capital efficiency

EPS GrowthGrowth
-68.1%2/10

Earnings declined 68.1%

Profit MarginProfitability
-15.5%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : FORTY

The strongest argument for FORTY centers on Price/Book, EPS Growth, Profit Margin. Profitability is solid with margins at 23.1% and operating margin at 5.9%.

Bull Case : ZEPP

The strongest argument for ZEPP centers on Price/Book, Revenue Growth. Revenue growth of 43.0% demonstrates continued momentum.

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 : ZEPP

The primary concerns for ZEPP are Market Cap, Return on Equity, EPS Growth.

Key Dynamics to Monitor

FORTY profiles as a value stock while ZEPP is a hypergrowth play — different risk/reward profiles.

ZEPP carries more volatility with a beta of 1.77 — expect wider price swings.

ZEPP is growing revenue faster at 43.0% — sustainability is the question.

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

Bottom Line

FORTY scores higher overall (58/100 vs 41/100), backed by strong 23.1% margins. ZEPP offers better value entry with a 48.6% 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.

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Zepp Health Corp

TECHNOLOGY · CONSUMER ELECTRONICS · China

Zepp Health Corporation, an activity and biometric data-driven company, develops, manufactures and sells smart wearable technology devices in the People's Republic of China. The company is headquartered in Hefei, the People's Republic of China.

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