WallStSmart

Fortinet Inc (FTNT)vsRapid7 Inc (RPD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 779% more annual revenue ($7.53B vs $855.92M). FTNT leads profitability with a 28.2% profit margin vs 2.4%. RPD appears more attractively valued with a PEG of 0.54. FTNT earns a higher WallStSmart Score of 73/100 (B).

FTNT

Strong Buy

73

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.3Quality: 6.0
Piotroski: 5/9Altman Z: 1.50

RPD

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 4.5Value: 7.3Quality: 2.5
Piotroski: 2/9Altman Z: -0.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+43.5%)

Margin of Safety

+43.5%

Fair Value

$276.16

Current Price

$156.07

$120.09 discount

UndervaluedFair: $276.16Overvalued
RPDUndervalued (+88.2%)

Margin of Safety

+88.2%

Fair Value

$62.68

Current Price

$10.31

$52.37 discount

UndervaluedFair: $62.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FTNT6 strengths · Avg: 9.0/10
Return on EquityProfitability
136.7%10/10

Every $100 of equity generates 137 in profit

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$114.51B9/10

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

RPD1 strengths · Avg: 8.0/10
PEG RatioValuation
0.548/10

Growing faster than its price suggests

Areas to Watch

FTNT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

P/E RatioValuation
56.1x2/10

Premium valuation, high expectations priced in

Price/BookValuation
74.0x2/10

Trading at 74.0x book value

RPD4 concerns · Avg: 3.3/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Market CapQuality
$711.75M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
2.3%3/10

Operating margin of 2.3%

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 : RPD

The strongest argument for RPD centers on PEG Ratio. PEG of 0.54 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 56.1x leaves little room for execution misses.

Bear Case : RPD

The primary concerns for RPD are P/E Ratio, Market Cap, Profit Margin. Debt-to-equity of 4.89 is elevated, increasing financial risk. Thin 2.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

FTNT profiles as a growth stock while RPD is a value 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 47/100), backed by strong 28.2% margins and 25.6% revenue growth. RPD offers better value entry with a 88.2% margin of safety. 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.

Rapid7 Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Rapid7, Inc. provides cyber security solutions. The company is headquartered in Boston, Massachusetts.

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