WallStSmart

CDW Corp (CDW)vsFormula Systems 1985 Ltd ADR (FORTY)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

CDW Corp generates 703% more annual revenue ($23.50B vs $2.93B). FORTY leads profitability with a 21.6% profit margin vs 4.6%. CDW appears more attractively valued with a PEG of 1.34. FORTY earns a higher WallStSmart Score of 61/100 (C+).

CDW

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 6.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.84

FORTY

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 3.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.22
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CDWUndervalued (+4.6%)

Margin of Safety

+4.6%

Fair Value

$141.44

Current Price

$149.77

$8.33 discount

UndervaluedFair: $141.44Overvalued
FORTYSignificantly Overvalued (-66.6%)

Margin of Safety

-66.6%

Fair Value

$80.14

Current Price

$119.21

$39.07 premium

UndervaluedFair: $80.14Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDW1 strengths · Avg: 10.0/10
Return on EquityProfitability
44.2%10/10

Every $100 of equity generates 44 in profit

FORTY4 strengths · Avg: 9.3/10
Return on EquityProfitability
44.8%10/10

Every $100 of equity generates 45 in profit

EPS GrowthGrowth
54.7%10/10

Earnings expanding 54.7% YoY

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

CDW4 concerns · Avg: 3.5/10
EPS GrowthGrowth
4.9%4/10

4.9% earnings growth

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

FORTY3 concerns · Avg: 2.7/10
Market CapQuality
$1.87B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.072/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CDW

The strongest argument for CDW centers on Return on Equity. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bull 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%.

Bear Case : CDW

The primary concerns for CDW are EPS Growth, Altman Z-Score, Profit Margin. Debt-to-equity of 2.44 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.

Bear Case : FORTY

The primary concerns for FORTY are Market Cap, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

CDW profiles as a value stock while FORTY is a mature play — different risk/reward profiles.

CDW carries more volatility with a beta of 0.94 — expect wider price swings.

CDW is growing revenue faster at 10.0% — sustainability is the question.

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

Bottom Line

FORTY scores higher overall (61/100 vs 59/100), backed by strong 21.6% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CDW Corp

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

CDW Corporation, headquartered in Lincolnshire, Illinois, is a provider of technology products and services for business, government and education.

Visit Website →

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 →

Want to dig deeper into these stocks?