WallStSmart

Fortinet Inc (FTNT)vsTE Connectivity Ltd (TEL)

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Smart Verdict

WallStSmart Research — data-driven comparison

TE Connectivity Ltd generates 152% more annual revenue ($19.89B vs $7.88B). FTNT leads profitability with a 29.0% profit margin vs 16.4%. TEL appears more attractively valued with a PEG of 1.23. TEL earns a higher WallStSmart Score of 76/100 (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

TEL

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 8.0Value: 5.7Quality: 7.5
Piotroski: 6/9Altman Z: 2.86
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+52.5%)

Margin of Safety

+52.5%

Fair Value

$286.50

Current Price

$118.84

$167.66 discount

UndervaluedFair: $286.50Overvalued

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
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

TEL5 strengths · Avg: 8.4/10
Market CapQuality
$61.25B9/10

Large-cap with strong market position

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
21.1%8/10

Strong operational efficiency at 21.1%

EPS GrowthGrowth
39.1%8/10

Earnings expanding 39.1% YoY

Free Cash FlowQuality
$1.24B8/10

Generating 1.2B in free cash flow

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
38.8x2/10

Trading at 38.8x book value

TEL0 concerns · Avg: 0/10

No major concerns identified

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 : TEL

The strongest argument for TEL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.1%. Revenue growth of 11.9% demonstrates continued momentum.

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 : TEL

No major red flags identified for TEL, but monitor valuation.

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 1.14 — expect wider price swings.

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

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

Bottom Line

TEL scores higher overall (76/100 vs 75/100), backed by strong 16.4% margins and 11.9% revenue growth. FTNT offers better value entry with a 52.5% 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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