WallStSmart

Fortinet Inc (FTNT)vsNETGEAR Inc (NTGR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 981% more annual revenue ($7.53B vs $696.38M). FTNT leads profitability with a 28.2% profit margin vs -3.6%. NTGR appears more attractively valued with a PEG of 0.74. FTNT earns a higher WallStSmart Score of 71/100 (B).

FTNT

Strong Buy

71

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.50

NTGR

Hold

44

out of 100

Grade: D

Growth: 2.0Profit: 2.0Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 1.31
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+40.9%)

Margin of Safety

+40.9%

Fair Value

$277.92

Current Price

$164.13

$113.79 discount

UndervaluedFair: $277.92Overvalued
NTGROvervalued (-5.4%)

Margin of Safety

-5.4%

Fair Value

$19.47

Current Price

$24.38

$4.91 premium

UndervaluedFair: $19.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Every $100 of equity generates 197 in profit

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$123.48B9/10

Large-cap with strong market position

Profit MarginProfitability
28.2%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
25.6%8/10

Revenue surging 25.6% year-over-year

EPS GrowthGrowth
43.9%8/10

Earnings expanding 43.9% YoY

NTGR3 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.748/10

Growing faster than its price suggests

Areas to Watch

FTNT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

P/E RatioValuation
57.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
77.8x2/10

Trading at 77.8x book value

NTGR4 concerns · Avg: 2.3/10
Market CapQuality
$663.48M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-8.5%2/10

ROE of -8.5% — below average capital efficiency

Revenue GrowthGrowth
-2.0%2/10

Revenue declined 2.0%

EPS GrowthGrowth
-68.7%2/10

Earnings declined 68.7%

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 28.2% and operating margin at 33.6%. Revenue growth of 25.6% demonstrates continued momentum.

Bull Case : NTGR

The strongest argument for NTGR centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bear Case : FTNT

The primary concerns for FTNT are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 57.8x leaves little room for execution misses.

Bear Case : NTGR

The primary concerns for NTGR are Market Cap, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

FTNT profiles as a growth stock while NTGR is a turnaround play — different risk/reward profiles.

NTGR carries more volatility with a beta of 1.19 — expect wider price swings.

FTNT is growing revenue faster at 25.6% — sustainability is the question.

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

Bottom Line

FTNT scores higher overall (71/100 vs 44/100), backed by strong 28.2% margins and 25.6% revenue growth. Both earn "Strong Buy" and "Hold" 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.

NETGEAR Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

NETGEAR, Inc. designs, develops, and markets Internet-connected products and networks for consumers, businesses, and service providers. The company is headquartered in San Jose, California.

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