Fortinet Inc (FTNT)vsPaylocity Holding Corporation (PCTY)
FTNT
Fortinet Inc
$156.07
-1.75%
TECHNOLOGY · Cap: $114.51B
PCTY
Paylocity Holding Corporation
$141.66
-0.84%
TECHNOLOGY · Cap: $7.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Fortinet Inc generates 325% more annual revenue ($7.53B vs $1.77B). FTNT leads profitability with a 28.2% profit margin vs 15.2%. PCTY appears more attractively valued with a PEG of 1.23. FTNT earns a higher WallStSmart Score of 73/100 (B).
FTNT
Strong Buy73
out of 100
Grade: B
PCTY
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.5%
Fair Value
$276.16
Current Price
$156.07
$120.09 discount
Margin of Safety
+62.0%
Fair Value
$283.03
Current Price
$141.66
$141.37 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 22 in profit
Conservative balance sheet, low leverage
Earnings expanding 27.6% YoY
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 74.0x book value
Moderate valuation
Distress zone — elevated risk
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 : PCTY
The strongest argument for PCTY centers on Return on Equity, Debt/Equity, EPS Growth. Profitability is solid with margins at 15.2% and operating margin at 19.1%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : FTNT
The primary concerns for FTNT are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 56.1x leaves little room for execution misses.
Bear Case : PCTY
The primary concerns for PCTY are P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
FTNT profiles as a growth stock while PCTY is a mature play — different risk/reward profiles.
FTNT carries more volatility with a beta of 1.06 — 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
FTNT scores higher overall (73/100 vs 65/100), backed by strong 28.2% margins and 25.6% revenue growth. PCTY offers better value entry with a 62.0% 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.
Paylocity Holding Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.
Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?