WallStSmart

Fortinet Inc (FTNT)vsToast Inc (TOST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 11% more annual revenue ($7.53B vs $6.80B). FTNT leads profitability with a 28.2% profit margin vs 7.1%. TOST appears more attractively valued with a PEG of 0.25. FTNT earns a higher WallStSmart Score of 73/100 (B).

FTNT

Strong Buy

73

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 5.3Quality: 6.0
Piotroski: 5/9Altman Z: 1.50

TOST

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 6.5Value: 7.3Quality: 7.3
Piotroski: 4/9Altman Z: 3.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+43.5%)

Margin of Safety

+43.5%

Fair Value

$276.16

Current Price

$156.07

$120.09 discount

UndervaluedFair: $276.16Overvalued
TOSTUndervalued (+24.8%)

Margin of Safety

+24.8%

Fair Value

$37.27

Current Price

$32.12

$5.15 discount

UndervaluedFair: $37.27Overvalued

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
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$114.51B9/10

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

TOST5 strengths · Avg: 9.4/10
PEG RatioValuation
0.2510/10

Growing faster than its price suggests

EPS GrowthGrowth
100.0%10/10

Earnings expanding 100.0% YoY

Altman Z-ScoreHealth
3.6510/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
23.8%9/10

Every $100 of equity generates 24 in profit

Revenue GrowthGrowth
23.1%8/10

Revenue surging 23.1% year-over-year

Areas to Watch

FTNT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

P/E RatioValuation
56.1x2/10

Premium valuation, high expectations priced in

Price/BookValuation
74.0x2/10

Trading at 74.0x book value

TOST3 concerns · Avg: 3.0/10
Price/BookValuation
9.4x4/10

Trading at 9.4x book value

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

P/E RatioValuation
43.0x2/10

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 28.2% and operating margin at 33.6%. Revenue growth of 25.6% demonstrates continued momentum.

Bull Case : TOST

The strongest argument for TOST centers on PEG Ratio, EPS Growth, Altman Z-Score. Revenue growth of 23.1% demonstrates continued momentum. PEG of 0.25 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 : TOST

The primary concerns for TOST are Price/Book, Profit Margin, P/E Ratio. A P/E of 43.0x leaves little room for execution misses.

Key Dynamics to Monitor

TOST carries more volatility with a beta of 1.73 — expect wider price swings.

FTNT is growing revenue faster at 25.6% — 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 68/100), backed by strong 28.2% margins and 25.6% revenue growth. TOST offers better value entry with a 24.8% 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.

Toast Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland. The company is headquartered in Boston, Massachusetts.

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