WallStSmart

Fortinet Inc (FTNT)vsBlock, Inc (XYZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Block, Inc generates 233% more annual revenue ($25.04B vs $7.53B). FTNT leads profitability with a 28.2% profit margin vs 1.4%. XYZ appears more attractively valued with a PEG of 0.59. 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

XYZ

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 6.7Quality: 7.5
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+37.4%)

Margin of Safety

+37.4%

Fair Value

$275.55

Current Price

$174.26

$101.29 discount

UndervaluedFair: $275.55Overvalued
XYZUndervalued (+62.1%)

Margin of Safety

+62.1%

Fair Value

$142.00

Current Price

$77.91

$64.09 discount

UndervaluedFair: $142.00Overvalued

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

XYZ4 strengths · Avg: 8.3/10
Debt/EquityHealth
0.309/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.598/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.90B8/10

Generating 1.9B in free cash flow

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
82.6x2/10

Trading at 82.6x book value

XYZ4 concerns · Avg: 2.8/10
Return on EquityProfitability
1.6%3/10

ROE of 1.6% — below average capital efficiency

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
136.6x2/10

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 : XYZ

The strongest argument for XYZ centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.59 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 : XYZ

The primary concerns for XYZ are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 136.6x leaves little room for execution misses. Thin 1.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

FTNT profiles as a growth stock while XYZ is a value play — different risk/reward profiles.

XYZ carries more volatility with a beta of 2.52 — expect wider price swings.

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

XYZ generates stronger free cash flow (1.9B), providing more financial flexibility.

Bottom Line

FTNT scores higher overall (73/100 vs 51/100), backed by strong 28.2% margins and 25.6% revenue growth. XYZ offers better value entry with a 62.1% margin of safety. Both earn "Strong Buy" and "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.

Block, Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Block, Inc., builds ecosystems focused on commerce and financial products and services in the United States and internationally. The company is headquartered in Oakland, California.

Want to dig deeper into these stocks?