Fortinet Inc (FTNT)vsSTMicroelectronics NV ADR (STM)
FTNT
Fortinet Inc
$156.07
-1.75%
TECHNOLOGY · Cap: $114.51B
STM
STMicroelectronics NV ADR
$51.51
+1.52%
TECHNOLOGY · Cap: $45.26B
Smart Verdict
WallStSmart Research — data-driven comparison
STMicroelectronics NV ADR generates 74% more annual revenue ($13.10B vs $7.53B). FTNT leads profitability with a 28.2% profit margin vs 3.6%. STM appears more attractively valued with a PEG of 0.19. FTNT earns a higher WallStSmart Score of 73/100 (B).
FTNT
Strong Buy73
out of 100
Grade: B
STM
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.5%
Fair Value
$276.16
Current Price
$156.07
$120.09 discount
Intrinsic value data unavailable for STM.
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
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Reasonable price relative to book value
Revenue surging 26.1% year-over-year
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 74.0x book value
ROE of 2.6% — below average capital efficiency
3.6% margin — thin
Earnings declined 33.3%
Negative free cash flow — burning cash
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 : STM
The strongest argument for STM centers on PEG Ratio, Altman Z-Score, Debt/Equity. Revenue growth of 26.1% demonstrates continued momentum. PEG of 0.19 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 : STM
The primary concerns for STM are Return on Equity, Profit Margin, EPS Growth. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
STM carries more volatility with a beta of 1.51 — expect wider price swings.
STM is growing revenue faster at 26.1% — sustainability is the question.
FTNT generates stronger free cash flow (966M), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FTNT scores higher overall (73/100 vs 48/100), backed by strong 28.2% margins and 25.6% revenue growth. 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.
STMicroelectronics NV ADR
TECHNOLOGY · SEMICONDUCTORS · USA
STMicroelectronics NV designs, develops, manufactures and markets semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. The company is headquartered in Geneva, Switzerland.
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