WallStSmart

Fortinet Inc (FTNT)vsQ2 Holdings (QTWO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 765% more annual revenue ($7.11B vs $821.58M). FTNT leads profitability with a 27.5% profit margin vs 9.0%. FTNT appears more attractively valued with a PEG of 3.57. FTNT earns a higher WallStSmart Score of 67/100 (B-).

FTNT

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 9.5Value: 4.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.50

QTWO

Buy

51

out of 100

Grade: C-

Growth: 8.0Profit: 6.0Value: 3.7Quality: 4.0
Piotroski: 4/9Altman Z: 0.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+43.0%)

Margin of Safety

+43.0%

Fair Value

$262.87

Current Price

$154.25

$108.62 discount

UndervaluedFair: $262.87Overvalued

Intrinsic value data unavailable for QTWO.

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
31.3%10/10

Strong operational efficiency at 31.3%

Market CapQuality
$113.60B9/10

Large-cap with strong market position

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

EPS GrowthGrowth
28.6%8/10

Earnings expanding 28.6% YoY

QTWO1 strengths · Avg: 10.0/10
EPS GrowthGrowth
471.4%10/10

Earnings expanding 471.4% YoY

Areas to Watch

FTNT4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

PEG RatioValuation
3.572/10

Expensive relative to growth rate

P/E RatioValuation
61.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
114.3x2/10

Trading at 114.3x book value

QTWO3 concerns · Avg: 2.0/10
PEG RatioValuation
8.942/10

Expensive relative to growth rate

P/E RatioValuation
49.2x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
0.762/10

Distress zone — elevated risk

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 27.5% and operating margin at 31.3%. Revenue growth of 20.1% demonstrates continued momentum.

Bull Case : QTWO

The strongest argument for QTWO centers on EPS Growth. Revenue growth of 14.1% demonstrates continued momentum.

Bear Case : FTNT

The primary concerns for FTNT are Altman Z-Score, PEG Ratio, P/E Ratio. A P/E of 61.3x leaves little room for execution misses.

Bear Case : QTWO

The primary concerns for QTWO are PEG Ratio, P/E Ratio, Altman Z-Score. A P/E of 49.2x leaves little room for execution misses.

Key Dynamics to Monitor

FTNT profiles as a growth stock while QTWO is a value play — different risk/reward profiles.

QTWO carries more volatility with a beta of 1.33 — 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

FTNT scores higher overall (67/100 vs 51/100), backed by strong 27.5% margins and 20.1% revenue growth. Both earn "Strong Buy" and "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.

Q2 Holdings

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Q2 Holdings, Inc. provides cloud-based digital banking solutions to Community and Regional Financial Institutions (RCFIs) in the United States. The company is headquartered in Austin, Texas.

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