WallStSmart

DigitalOcean Holdings Inc (DOCN)vsFortinet Inc (FTNT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 649% more annual revenue ($7.11B vs $948.63M). FTNT leads profitability with a 27.5% profit margin vs 25.0%. DOCN appears more attractively valued with a PEG of 1.54. FTNT earns a higher WallStSmart Score of 67/100 (B-).

DOCN

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 3.7Quality: 4.0
Piotroski: 5/9Altman Z: 0.73

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

Intrinsic value data unavailable for DOCN.

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

DOCN3 strengths · Avg: 8.7/10
Return on EquityProfitability
26.7%9/10

Every $100 of equity generates 27 in profit

Profit MarginProfitability
25.0%9/10

Keeps 25 of every $100 in revenue as profit

Revenue GrowthGrowth
22.4%8/10

Revenue surging 22.4% year-over-year

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

DOCN4 concerns · Avg: 2.8/10
PEG RatioValuation
1.544/10

Expensive relative to growth rate

Debt/EquityHealth
1.013/10

Elevated debt levels

P/E RatioValuation
74.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
21.2x2/10

Trading at 21.2x book value

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 : DOCN

The strongest argument for DOCN centers on Return on Equity, Profit Margin, Revenue Growth. Profitability is solid with margins at 25.0% and operating margin at 14.2%. Revenue growth of 22.4% demonstrates continued momentum.

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 : DOCN

The primary concerns for DOCN are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 74.8x 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

DOCN carries more volatility with a beta of 1.57 — expect wider price swings.

DOCN is growing revenue faster at 22.4% — sustainability is the question.

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

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FTNT scores higher overall (67/100 vs 57/100), 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.

DigitalOcean Holdings Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

DigitalOcean Holdings, Inc. operates a cloud computing platform that provides platform infrastructure and tools for developers, startups, and small and medium-sized businesses in North America, Europe, Asia, and internationally. The company is headquartered in New York, New York.

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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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