Fortinet Inc (FTNT)vsZscaler Inc (ZS)
FTNT
Fortinet Inc
$148.00
-1.84%
TECHNOLOGY · Cap: $109.52B
ZS
Zscaler Inc
$124.06
-3.31%
TECHNOLOGY · Cap: $20.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Fortinet Inc generates 124% more annual revenue ($7.11B vs $3.17B). FTNT leads profitability with a 27.5% profit margin vs -2.4%. ZS appears more attractively valued with a PEG of 1.41. FTNT earns a higher WallStSmart Score of 67/100 (B-).
FTNT
Strong Buy67
out of 100
Grade: B-
ZS
Hold38
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.3%
Fair Value
$264.55
Current Price
$148.00
$116.55 discount
Margin of Safety
+44.6%
Fair Value
$308.92
Current Price
$124.06
$184.86 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 197 in profit
Strong operational efficiency at 31.3%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Revenue surging 20.1% year-over-year
Earnings expanding 28.6% YoY
Revenue surging 25.4% year-over-year
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 109.6x book value
Trading at 8.5x book value
0.0% earnings growth
Weak financial health signals
ROE of -3.3% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 : ZS
The strongest argument for ZS centers on Revenue Growth. Revenue growth of 25.4% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.
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 : ZS
The primary concerns for ZS are Price/Book, EPS Growth, Piotroski F-Score.
Key Dynamics to Monitor
FTNT carries more volatility with a beta of 1.11 — expect wider price swings.
ZS is growing revenue faster at 25.4% — sustainability is the question.
FTNT generates stronger free cash flow (1.0B), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
FTNT scores higher overall (67/100 vs 38/100), backed by strong 27.5% margins and 20.1% revenue growth. ZS offers better value entry with a 44.6% margin of safety. Both earn "Strong Buy" and "Hold" 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.
Zscaler Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
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