WallStSmart

Fortinet Inc (FTNT)vsPaychex Inc (PAYX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 14% more annual revenue ($7.53B vs $6.60B). FTNT leads profitability with a 28.2% profit margin vs 27.4%. PAYX appears more attractively valued with a PEG of 1.85. 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

PAYX

Strong Buy

68

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 5.3Quality: 4.5
Piotroski: 5/9Altman Z: 1.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+34.3%)

Margin of Safety

+34.3%

Fair Value

$274.02

Current Price

$139.10

$134.92 discount

UndervaluedFair: $274.02Overvalued
PAYXUndervalued (+10.9%)

Margin of Safety

+10.9%

Fair Value

$106.40

Current Price

$108.21

$1.81 discount

UndervaluedFair: $106.40Overvalued

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
$124.09B9/10

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

PAYX3 strengths · Avg: 9.7/10
Return on EquityProfitability
48.7%10/10

Every $100 of equity generates 49 in profit

Operating MarginProfitability
38.5%10/10

Strong operational efficiency at 38.5%

Profit MarginProfitability
27.4%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

FTNT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.924/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

P/E RatioValuation
59.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
65.9x2/10

Trading at 65.9x book value

PAYX4 concerns · Avg: 3.3/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Debt/EquityHealth
1.253/10

Elevated debt levels

Altman Z-ScoreHealth
1.402/10

Distress zone — elevated risk

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 : PAYX

The strongest argument for PAYX centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 27.4% and operating margin at 38.5%.

Bear Case : FTNT

The primary concerns for FTNT are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 59.8x leaves little room for execution misses.

Bear Case : PAYX

The primary concerns for PAYX are PEG Ratio, Price/Book, Debt/Equity.

Key Dynamics to Monitor

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

FTNT carries more volatility with a beta of 1.04 — 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.

Bottom Line

FTNT scores higher overall (73/100 vs 68/100), backed by strong 28.2% margins and 25.6% revenue growth. 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.

Paychex Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Paychex, Inc. is an American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.

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