WallStSmart

Check Point Software Technologies Ltd (CHKP)vsFortinet Inc (FTNT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 158% more annual revenue ($7.11B vs $2.76B). CHKP leads profitability with a 38.4% profit margin vs 27.5%. CHKP appears more attractively valued with a PEG of 1.30. FTNT earns a higher WallStSmart Score of 67/100 (B-).

CHKP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 9.0Value: 5.3Quality: 6.5
Piotroski: 3/9Altman Z: 4.07

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

CHKPSignificantly Overvalued (-52.8%)

Margin of Safety

-52.8%

Fair Value

$115.46

Current Price

$135.82

$20.36 premium

UndervaluedFair: $115.46Overvalued
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

CHKP5 strengths · Avg: 9.2/10
Return on EquityProfitability
37.6%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
38.4%10/10

Keeps 38 of every $100 in revenue as profit

Altman Z-ScoreHealth
4.0710/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

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

CHKP2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : CHKP

The strongest argument for CHKP centers on Return on Equity, Profit Margin, Altman Z-Score. Profitability is solid with margins at 38.4% and operating margin at 27.7%. PEG of 1.30 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 : CHKP

The primary concerns for CHKP are Revenue Growth, Piotroski F-Score.

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

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

FTNT carries more volatility with a beta of 0.92 — 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 64/100), 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.

Check Point Software Technologies Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Check Point Software Technologies Ltd. develops, markets and supports a range of IT security products and services globally. The company is headquartered in Tel Aviv, 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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