WallStSmart

Fortinet Inc (FTNT)vsZoom Video Communications Inc (ZM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 44% more annual revenue ($7.11B vs $4.93B). ZM leads profitability with a 42.0% profit margin vs 27.5%. FTNT appears more attractively valued with a PEG of 3.32. ZM earns a higher WallStSmart Score of 70/100 (B-).

FTNT

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 9.5Value: 4.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.50

ZM

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 5.0Quality: 9.0
Piotroski: 4/9Altman Z: 4.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+45.4%)

Margin of Safety

+45.4%

Fair Value

$265.15

Current Price

$149.67

$115.48 discount

UndervaluedFair: $265.15Overvalued

Intrinsic value data unavailable for ZM.

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
31.3%10/10

Strong operational efficiency at 31.3%

Market CapQuality
$109.06B9/10

Large-cap with strong market position

Profit MarginProfitability
27.5%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
20.1%8/10

Revenue surging 20.1% year-over-year

EPS GrowthGrowth
28.6%8/10

Earnings expanding 28.6% YoY

ZM6 strengths · Avg: 9.5/10
Profit MarginProfitability
42.0%10/10

Keeps 42 of every $100 in revenue as profit

EPS GrowthGrowth
74.2%10/10

Earnings expanding 74.2% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7910/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Areas to Watch

FTNT4 concerns · Avg: 2.5/10
Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

PEG RatioValuation
3.322/10

Expensive relative to growth rate

P/E RatioValuation
57.7x2/10

Premium valuation, high expectations priced in

Price/BookValuation
110.9x2/10

Trading at 110.9x book value

ZM1 concerns · Avg: 2.0/10
PEG RatioValuation
4.212/10

Expensive relative to growth rate

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 27.5% and operating margin at 31.3%. Revenue growth of 20.1% demonstrates continued momentum.

Bull Case : ZM

The strongest argument for ZM centers on Profit Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 42.0% and operating margin at 25.1%.

Bear Case : FTNT

The primary concerns for FTNT are Altman Z-Score, PEG Ratio, P/E Ratio. A P/E of 57.7x leaves little room for execution misses.

Bear Case : ZM

The primary concerns for ZM are PEG Ratio.

Key Dynamics to Monitor

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

ZM carries more volatility with a beta of 0.99 — expect wider price swings.

FTNT is growing revenue faster at 20.1% — sustainability is the question.

FTNT generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

ZM scores higher overall (70/100 vs 67/100), backed by strong 42.0% margins. FTNT offers better value entry with a 45.4% 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.

Zoom Video Communications Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.

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