Fortinet Inc (FTNT)vsZscaler Inc (ZS)
FTNT
Fortinet Inc
$174.26
-0.55%
TECHNOLOGY · Cap: $114.51B
ZS
Zscaler Inc
$210.18
+1.47%
TECHNOLOGY · Cap: $33.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Fortinet Inc generates 125% more annual revenue ($7.53B vs $3.35B). FTNT leads profitability with a 28.2% profit margin vs -1.9%. FTNT appears more attractively valued with a PEG of 1.74. FTNT earns a higher WallStSmart Score of 73/100 (B).
FTNT
Strong Buy73
out of 100
Grade: B
ZS
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.4%
Fair Value
$275.55
Current Price
$174.26
$101.29 discount
Margin of Safety
+45.4%
Fair Value
$313.25
Current Price
$210.18
$103.07 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 137 in profit
Strong operational efficiency at 33.6%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Revenue surging 25.6% year-over-year
Earnings expanding 43.9% YoY
Revenue surging 24.9% year-over-year
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 82.6x book value
Expensive relative to growth rate
Trading at 13.2x book value
0.0% earnings growth
Weak financial health signals
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 28.2% and operating margin at 33.6%. Revenue growth of 25.6% demonstrates continued momentum.
Bull Case : ZS
The strongest argument for ZS centers on Revenue Growth. Revenue growth of 24.9% demonstrates continued momentum.
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 : ZS
The primary concerns for ZS are PEG Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
FTNT carries more volatility with a beta of 1.06 — 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 32/100), backed by strong 28.2% margins and 25.6% revenue growth. ZS offers better value entry with a 45.4% margin of safety. Both earn "Strong Buy" and "Avoid" 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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