Formula Systems 1985 Ltd ADR (FORTY)vsInternational Business Machines (IBM)
FORTY
Formula Systems 1985 Ltd ADR
$126.00
-8.86%
TECHNOLOGY · Cap: $1.80B
IBM
International Business Machines
$284.84
-5.05%
TECHNOLOGY · Cap: $252.56B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 2409% more annual revenue ($68.91B vs $2.75B). FORTY leads profitability with a 22.7% profit margin vs 15.6%. IBM appears more attractively valued with a PEG of 2.51. FORTY earns a higher WallStSmart Score of 63/100 (C+).
FORTY
Buy63
out of 100
Grade: C+
IBM
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-79.8%
Fair Value
$74.26
Current Price
$126.00
$51.74 premium
Intrinsic value data unavailable for IBM.
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
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Generating 4.8B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Trading at 8.1x book value
Weak financial health signals
Expensive relative to growth rate
Elevated debt levels
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 : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.
Bear Case : FORTY
The primary concerns for FORTY are P/E Ratio, Market Cap, Piotroski F-Score.
Bear Case : IBM
The primary concerns for IBM are Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.12 is elevated, increasing financial risk.
Key Dynamics to Monitor
FORTY profiles as a growth stock while IBM is a mature play — different risk/reward profiles.
IBM carries more volatility with a beta of 0.67 — 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 60/100), backed by strong 22.7% margins and 19.2% revenue growth. 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.
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 →International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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