Fortinet Inc (FTNT)vsScanSource Inc (SCSC)
FTNT
Fortinet Inc
$118.84
-3.00%
TECHNOLOGY · Cap: $99.98B
SCSC
ScanSource Inc
$42.78
-5.08%
TECHNOLOGY · Cap: $1.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Fortinet Inc generates 144% more annual revenue ($7.88B vs $3.23B). FTNT leads profitability with a 29.0% profit margin vs 2.4%. SCSC appears more attractively valued with a PEG of 0.83. FTNT earns a higher WallStSmart Score of 75/100 (B+).
FTNT
Strong Buy75
out of 100
Grade: B+
SCSC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+52.5%
Fair Value
$286.50
Current Price
$118.84
$167.66 discount
Margin of Safety
+9.0%
Fair Value
$38.10
Current Price
$42.78
$4.68 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 137 in profit
Strong operational efficiency at 33.8%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Revenue surging 20.5% year-over-year
Earnings expanding 38.7% YoY
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
17.3% revenue growth
Areas to Watch
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 38.8x book value
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 3.5%
Negative free cash flow — burning cash
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 29.0% and operating margin at 33.8%. Revenue growth of 20.5% demonstrates continued momentum.
Bull Case : SCSC
The strongest argument for SCSC centers on Price/Book, Altman Z-Score, Debt/Equity. Revenue growth of 17.3% demonstrates continued momentum. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : FTNT
The primary concerns for FTNT are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 44.5x leaves little room for execution misses.
Bear Case : SCSC
The primary concerns for SCSC are Market Cap, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
SCSC carries more volatility with a beta of 1.25 — expect wider price swings.
FTNT is growing revenue faster at 20.5% — 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 (75/100 vs 66/100), backed by strong 29.0% margins and 20.5% 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.
ScanSource Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. The company is headquartered in Greenville, South Carolina.
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