Fortinet Inc (FTNT)vsStoneCo Ltd (STNE)
FTNT
Fortinet Inc
$159.64
-0.29%
TECHNOLOGY · Cap: $123.48B
STNE
StoneCo Ltd
$10.60
-4.33%
TECHNOLOGY · Cap: $2.76B
Smart Verdict
WallStSmart Research — data-driven comparison
StoneCo Ltd generates 80% more annual revenue ($13.54B vs $7.53B). FTNT leads profitability with a 28.2% profit margin vs 26.0%. STNE trades at a lower P/E of 4.2x. STNE earns a higher WallStSmart Score of 77/100 (B+).
FTNT
Strong Buy71
out of 100
Grade: B
STNE
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.9%
Fair Value
$277.92
Current Price
$159.64
$118.28 discount
Margin of Safety
+79.0%
Fair Value
$84.09
Current Price
$10.60
$73.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 197 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
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 44.3%
Earnings expanding 273.8% YoY
Every $100 of equity generates 28 in profit
Keeps 26 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 75.7x book value
4.3% revenue growth
Elevated debt levels
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 28.2% and operating margin at 33.6%. Revenue growth of 25.6% demonstrates continued momentum.
Bull Case : STNE
The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.0% and operating margin at 44.3%.
Bear Case : FTNT
The primary concerns for FTNT are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 57.8x leaves little room for execution misses.
Bear Case : STNE
The primary concerns for STNE are Revenue Growth, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
FTNT profiles as a growth stock while STNE is a value play — different risk/reward profiles.
STNE carries more volatility with a beta of 1.64 — expect wider price swings.
FTNT is growing revenue faster at 25.6% — sustainability is the question.
STNE generates stronger free cash flow (3.1B), providing more financial flexibility.
Bottom Line
STNE scores higher overall (77/100 vs 71/100), backed by strong 26.0% margins. FTNT offers better value entry with a 40.9% 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.
StoneCo Ltd
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.
Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?