WallStSmart

Fortinet Inc (FTNT)vsSensata Technologies Holding NV (ST)

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Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 109% more annual revenue ($7.88B vs $3.78B). FTNT leads profitability with a 29.0% profit margin vs 2.4%. ST appears more attractively valued with a PEG of 0.23. FTNT earns a higher WallStSmart Score of 75/100 (B+).

FTNT

Strong Buy

75

out of 100

Grade: B+

Growth: 8.7Profit: 10.0Value: 6.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.50

ST

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 6.7Quality: 6.5
Piotroski: 4/9Altman Z: 1.80
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+52.5%)

Margin of Safety

+52.5%

Fair Value

$286.50

Current Price

$128.11

$158.39 discount

UndervaluedFair: $286.50Overvalued
STUndervalued (+19.2%)

Margin of Safety

+19.2%

Fair Value

$46.04

Current Price

$41.64

$4.40 discount

UndervaluedFair: $46.04Overvalued

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
33.8%10/10

Strong operational efficiency at 33.8%

Market CapQuality
$99.98B9/10

Large-cap with strong market position

Profit MarginProfitability
29.0%9/10

Keeps 29 of every $100 in revenue as profit

Revenue GrowthGrowth
20.5%8/10

Revenue surging 20.5% year-over-year

EPS GrowthGrowth
38.7%8/10

Earnings expanding 38.7% YoY

ST3 strengths · Avg: 9.3/10
PEG RatioValuation
0.2310/10

Growing faster than its price suggests

EPS GrowthGrowth
70.7%10/10

Earnings expanding 70.7% YoY

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

FTNT3 concerns · Avg: 2.7/10
Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

P/E RatioValuation
44.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
41.9x2/10

Trading at 41.9x book value

ST4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.804/10

Grey zone — moderate risk

Return on EquityProfitability
1.7%3/10

ROE of 1.7% — below average capital efficiency

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

P/E RatioValuation
70.5x2/10

Premium valuation, high expectations priced in

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 29.0% and operating margin at 33.8%. Revenue growth of 20.5% demonstrates continued momentum.

Bull Case : ST

The strongest argument for ST centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.23 suggests the stock is reasonably priced for its growth.

Bear Case : FTNT

The primary concerns for FTNT are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 44.5x leaves little room for execution misses.

Bear Case : ST

The primary concerns for ST are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 70.5x leaves little room for execution misses. Thin 2.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

ST carries more volatility with a beta of 1.24 — expect wider price swings.

FTNT is growing revenue faster at 20.5% — sustainability is the question.

FTNT generates stronger free cash flow (966M), providing more financial flexibility.

Bottom Line

FTNT scores higher overall (75/100 vs 63/100), backed by strong 29.0% margins and 20.5% revenue growth. ST offers better value entry with a 19.2% margin of safety. 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.

Sensata Technologies Holding NV

TECHNOLOGY · SCIENTIFIC & TECHNICAL INSTRUMENTS · USA

Sensata Technologies Holding plc, develops, manufactures and sells sensors, sensor-based solutions, controls and other products in America, Europe, Asia and internationally. The company is headquartered in Attleboro, Massachusetts.

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