WallStSmart

Allot Communications Ltd (ALLT)vsFortinet Inc (FTNT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 6654% more annual revenue ($7.11B vs $105.27M). FTNT leads profitability with a 27.5% profit margin vs 5.7%. ALLT appears more attractively valued with a PEG of 0.83. FTNT earns a higher WallStSmart Score of 67/100 (B-).

ALLT

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 4.0Quality: 6.5
Piotroski: 4/9Altman Z: 0.25

FTNT

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 9.5Value: 4.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.50
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALLTSignificantly Overvalued (-18.9%)

Margin of Safety

-18.9%

Fair Value

$8.59

Current Price

$7.39

$1.20 premium

UndervaluedFair: $8.59Overvalued
FTNTUndervalued (+45.4%)

Margin of Safety

+45.4%

Fair Value

$265.15

Current Price

$149.67

$115.48 discount

UndervaluedFair: $265.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALLT3 strengths · Avg: 9.3/10
EPS GrowthGrowth
817.0%10/10

Earnings expanding 817.0% YoY

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.838/10

Growing faster than its price suggests

FTNT6 strengths · Avg: 9.0/10
Return on EquityProfitability
197.5%10/10

Every $100 of equity generates 197 in profit

Operating MarginProfitability
31.3%10/10

Strong operational efficiency at 31.3%

Market CapQuality
$109.06B9/10

Large-cap with strong market position

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

EPS GrowthGrowth
28.6%8/10

Earnings expanding 28.6% YoY

Areas to Watch

ALLT4 concerns · Avg: 2.8/10
Market CapQuality
$400.19M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.2%3/10

ROE of 5.2% — below average capital efficiency

Profit MarginProfitability
5.7%3/10

5.7% margin — thin

P/E RatioValuation
62.9x2/10

Premium valuation, high expectations priced in

FTNT4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

PEG RatioValuation
3.322/10

Expensive relative to growth rate

P/E RatioValuation
57.7x2/10

Premium valuation, high expectations priced in

Price/BookValuation
110.9x2/10

Trading at 110.9x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ALLT

The strongest argument for ALLT centers on EPS Growth, Debt/Equity, PEG Ratio. Revenue growth of 14.1% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.

Bull Case : FTNT

The strongest argument for FTNT centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 27.5% and operating margin at 31.3%. Revenue growth of 20.1% demonstrates continued momentum.

Bear Case : ALLT

The primary concerns for ALLT are Market Cap, Return on Equity, Profit Margin. A P/E of 62.9x leaves little room for execution misses.

Bear Case : FTNT

The primary concerns for FTNT are Altman Z-Score, PEG Ratio, P/E Ratio. A P/E of 57.7x leaves little room for execution misses.

Key Dynamics to Monitor

ALLT profiles as a value stock while FTNT is a growth play — different risk/reward profiles.

ALLT carries more volatility with a beta of 1.47 — expect wider price swings.

FTNT is growing revenue faster at 20.1% — sustainability is the question.

FTNT generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

FTNT scores higher overall (67/100 vs 59/100), backed by strong 27.5% margins and 20.1% revenue growth. Both earn "Strong 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.

Allot Communications Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Allot Ltd. provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa and the Americas. The company is headquartered in Hod-Hasharon, Israel.

Fortinet Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Fortinet (Nasdaq: FTNT) is an American multinational corporation headquartered in Sunnyvale, California. It develops and sells cybersecurity solutions, including but not limited to physical products such as firewalls, plus software and services such as anti-virus protection, intrusion prevention systems and endpoint security components.

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