WallStSmart

Fortinet Inc (FTNT)vsScanSource Inc (SCSC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 130% more annual revenue ($7.11B vs $3.09B). FTNT leads profitability with a 27.5% profit margin vs 2.4%. SCSC appears more attractively valued with a PEG of 0.75. FTNT earns a higher WallStSmart Score of 67/100 (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

SCSC

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 7.3Quality: 8.0
Piotroski: 4/9Altman Z: 3.77
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
SCSCUndervalued (+2.4%)

Margin of Safety

+2.4%

Fair Value

$35.50

Current Price

$45.87

$10.37 discount

UndervaluedFair: $35.50Overvalued

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

SCSC5 strengths · Avg: 9.2/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.7710/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.758/10

Growing faster than its price suggests

P/E RatioValuation
14.8x8/10

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

SCSC3 concerns · Avg: 3.0/10
Market CapQuality
$993.26M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
3.1%3/10

Operating margin of 3.1%

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 : SCSC

The strongest argument for SCSC centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.75 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 : 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

FTNT profiles as a growth stock while SCSC is a value play — different risk/reward profiles.

SCSC carries more volatility with a beta of 1.31 — 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

FTNT scores higher overall (67/100 vs 58/100), backed by strong 27.5% margins and 20.1% revenue growth. Both earn "Strong Buy" and "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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