WallStSmart

Fortinet Inc (FTNT)vsMACOM Technology Solutions Holdings Inc (MTSI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 577% more annual revenue ($7.88B vs $1.16B). FTNT leads profitability with a 29.0% profit margin vs 20.7%. FTNT appears more attractively valued with a PEG of 1.50. FTNT earns a higher WallStSmart Score of 75/100 (B+).

FTNT

Strong Buy

75

out of 100

Grade: B+

Growth: 8.7Profit: 10.0Value: 6.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.50

MTSI

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 7.5Value: 3.7Quality: 7.5
Piotroski: 4/9Altman Z: 1.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+52.5%)

Margin of Safety

+52.5%

Fair Value

$286.50

Current Price

$118.84

$167.66 discount

UndervaluedFair: $286.50Overvalued

Intrinsic value data unavailable for MTSI.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FTNT6 strengths · Avg: 9.0/10
Return on EquityProfitability
136.7%10/10

Every $100 of equity generates 137 in profit

Operating MarginProfitability
33.8%10/10

Strong operational efficiency at 33.8%

Market CapQuality
$99.98B9/10

Large-cap with strong market position

Profit MarginProfitability
29.0%9/10

Keeps 29 of every $100 in revenue as profit

Revenue GrowthGrowth
20.5%8/10

Revenue surging 20.5% year-over-year

EPS GrowthGrowth
38.7%8/10

Earnings expanding 38.7% YoY

MTSI5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
35.8%10/10

Revenue surging 35.8% year-over-year

EPS GrowthGrowth
166.7%10/10

Earnings expanding 166.7% YoY

Profit MarginProfitability
20.7%9/10

Keeps 21 of every $100 in revenue as profit

Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

Areas to Watch

FTNT3 concerns · Avg: 2.7/10
Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

P/E RatioValuation
44.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
38.8x2/10

Trading at 38.8x book value

MTSI4 concerns · Avg: 3.5/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

Price/BookValuation
10.5x4/10

Trading at 10.5x book value

Altman Z-ScoreHealth
1.794/10

Distress zone — elevated risk

P/E RatioValuation
83.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FTNT

The strongest argument for FTNT centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.0% and operating margin at 33.8%. Revenue growth of 20.5% demonstrates continued momentum.

Bull Case : MTSI

The strongest argument for MTSI centers on Revenue Growth, EPS Growth, Profit Margin. Profitability is solid with margins at 20.7% and operating margin at 23.3%. Revenue growth of 35.8% demonstrates continued momentum.

Bear Case : FTNT

The primary concerns for FTNT are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 44.5x leaves little room for execution misses.

Bear Case : MTSI

The primary concerns for MTSI are PEG Ratio, Price/Book, Altman Z-Score. A P/E of 83.1x leaves little room for execution misses.

Key Dynamics to Monitor

MTSI carries more volatility with a beta of 1.76 — expect wider price swings.

MTSI is growing revenue faster at 35.8% — sustainability is the question.

FTNT generates stronger free cash flow (966M), providing more financial flexibility.

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

Bottom Line

FTNT scores higher overall (75/100 vs 68/100), backed by strong 29.0% margins and 20.5% revenue growth. Both earn "Strong Buy" and "Strong 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.

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.

MACOM Technology Solutions Holdings Inc

TECHNOLOGY · SEMICONDUCTORS · USA

MACOM Technology Solutions Holdings, Inc. designs and manufactures analog semiconductor solutions for use in wired and wireless applications in the radio frequency (RF), microwave, millimeter wave and light wave spectrum in the United States, China, Asia Pacific and internationally. . . The company is headquartered in Lowell, Massachusetts.

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