Fortinet Inc (FTNT)vsPaylocity Holding Corporation (PCTY)
FTNT
Fortinet Inc
$149.67
+2.18%
TECHNOLOGY · Cap: $109.06B
PCTY
Paylocity Holding Corporation
$113.46
+0.71%
TECHNOLOGY · Cap: $5.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Fortinet Inc generates 312% more annual revenue ($7.11B vs $1.73B). FTNT leads profitability with a 27.5% profit margin vs 14.9%. PCTY appears more attractively valued with a PEG of 0.86. PCTY earns a higher WallStSmart Score of 74/100 (B).
FTNT
Strong Buy67
out of 100
Grade: B-
PCTY
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.4%
Fair Value
$265.15
Current Price
$149.67
$115.48 discount
Margin of Safety
+55.3%
Fair Value
$240.76
Current Price
$113.46
$127.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 197 in profit
Strong operational efficiency at 31.3%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Revenue surging 20.1% year-over-year
Earnings expanding 28.6% YoY
Strong operational efficiency at 31.2%
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Growing faster than its price suggests
Earnings expanding 27.3% YoY
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 110.9x book value
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 27.5% and operating margin at 31.3%. Revenue growth of 20.1% demonstrates continued momentum.
Bull Case : PCTY
The strongest argument for PCTY centers on Operating Margin, Return on Equity, Debt/Equity. Revenue growth of 10.5% demonstrates continued momentum. PEG of 0.86 suggests the stock is reasonably priced for its growth.
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.
Bear Case : PCTY
The primary concerns for PCTY are Altman Z-Score.
Key Dynamics to Monitor
FTNT profiles as a growth stock while PCTY is a value play — different risk/reward profiles.
FTNT carries more volatility with a beta of 0.92 — expect wider price swings.
FTNT is growing revenue faster at 20.1% — sustainability is the question.
FTNT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
PCTY scores higher overall (74/100 vs 67/100) and 10.5% revenue growth. FTNT offers better value entry with a 45.4% 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.
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