WallStSmart

Fortinet Inc (FTNT)vsTE Connectivity Ltd (TEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TE Connectivity Ltd generates 157% more annual revenue ($19.32B vs $7.53B). FTNT leads profitability with a 28.2% profit margin vs 15.6%. TEL appears more attractively valued with a PEG of 0.89. TEL earns a higher WallStSmart Score of 74/100 (B).

FTNT

Strong Buy

71

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.3Quality: 5.5
Piotroski: 5/9Altman Z: 1.50

TEL

Strong Buy

74

out of 100

Grade: B

Growth: 6.0Profit: 8.0Value: 6.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+40.9%)

Margin of Safety

+40.9%

Fair Value

$277.92

Current Price

$159.64

$118.28 discount

UndervaluedFair: $277.92Overvalued

Intrinsic value data unavailable for TEL.

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
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$123.48B9/10

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

TEL5 strengths · Avg: 8.4/10
Market CapQuality
$63.21B9/10

Large-cap with strong market position

Return on EquityProfitability
22.8%9/10

Every $100 of equity generates 23 in profit

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Operating MarginProfitability
20.8%8/10

Strong operational efficiency at 20.8%

Free Cash FlowQuality
$1.20B8/10

Generating 1.2B in free cash flow

Areas to Watch

FTNT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

P/E RatioValuation
57.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
75.7x2/10

Trading at 75.7x book value

TEL1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : TEL

The strongest argument for TEL centers on Market Cap, Return on Equity, PEG Ratio. Profitability is solid with margins at 15.6% and operating margin at 20.8%. Revenue growth of 13.8% demonstrates continued momentum.

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 : TEL

The primary concerns for TEL are Piotroski F-Score.

Key Dynamics to Monitor

FTNT profiles as a growth stock while TEL is a mature play — different risk/reward profiles.

TEL carries more volatility with a beta of 1.16 — expect wider price swings.

FTNT is growing revenue faster at 25.6% — sustainability is the question.

TEL generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

TEL scores higher overall (74/100 vs 71/100), backed by strong 15.6% margins and 13.8% revenue growth. 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.

TE Connectivity Ltd

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.

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