Fortinet Inc (FTNT)vsPaycom Software, Inc. (PAYC)
FTNT
Fortinet Inc
$174.08
-5.90%
TECHNOLOGY · Cap: $124.09B
PAYC
Paycom Software, Inc.
$262.79
+0.32%
TECHNOLOGY · Cap: $11.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Fortinet Inc generates 252% more annual revenue ($7.53B vs $2.14B). FTNT leads profitability with a 28.2% profit margin vs 22.8%. PAYC appears more attractively valued with a PEG of 1.17. PAYC earns a higher WallStSmart Score of 74/100 (B).
FTNT
Strong Buy73
out of 100
Grade: B
PAYC
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+34.3%
Fair Value
$274.02
Current Price
$174.08
$99.94 discount
Margin of Safety
+74.5%
Fair Value
$465.15
Current Price
$262.79
$202.36 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 137 in profit
Strong operational efficiency at 33.6%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Revenue surging 25.6% year-over-year
Earnings expanding 43.9% YoY
Every $100 of equity generates 85 in profit
Strong operational efficiency at 31.7%
Keeps 23 of every $100 in revenue as profit
Earnings expanding 48.1% YoY
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 82.5x book value
Moderate valuation
Trading at 20.0x book value
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.8% and operating margin at 31.7%. PEG of 1.17 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 59.8x leaves little room for execution misses.
Bear Case : PAYC
The primary concerns for PAYC are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.72 is elevated, increasing financial risk.
Key Dynamics to Monitor
FTNT profiles as a growth stock while PAYC is a mature play — different risk/reward profiles.
FTNT carries more volatility with a beta of 1.04 — expect wider price swings.
FTNT is growing revenue faster at 25.6% — sustainability is the question.
FTNT generates stronger free cash flow (966M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (74/100 vs 73/100), backed by strong 22.8% margins. FTNT offers better value entry with a 34.3% margin of safety. 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.
Paycom Software, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.
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