Fortinet Inc (FTNT)vsSilicon Motion Technology (SIMO)
FTNT
Fortinet Inc
$170.18
+9.04%
TECHNOLOGY · Cap: $114.51B
SIMO
Silicon Motion Technology
$284.48
+7.25%
TECHNOLOGY · Cap: $9.42B
Smart Verdict
WallStSmart Research — data-driven comparison
Fortinet Inc generates 473% more annual revenue ($7.53B vs $1.31B). FTNT leads profitability with a 28.2% profit margin vs 22.1%. SIMO appears more attractively valued with a PEG of 0.70. SIMO earns a higher WallStSmart Score of 78/100 (B+).
FTNT
Strong Buy73
out of 100
Grade: B
SIMO
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.5%
Fair Value
$276.16
Current Price
$170.18
$105.98 discount
Margin of Safety
-23.9%
Fair Value
$112.96
Current Price
$284.48
$171.52 premium
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 127.0% year-over-year
Earnings expanding 734.0% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 80.7x book value
Premium valuation, high expectations priced in
Trading at 9.2x book value
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 28.2% and operating margin at 33.6%. Revenue growth of 25.6% demonstrates continued momentum.
Bull Case : SIMO
The strongest argument for SIMO centers on Revenue Growth, EPS Growth, Debt/Equity. Profitability is solid with margins at 22.1% and operating margin at 22.4%. Revenue growth of 127.0% 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 : SIMO
The primary concerns for SIMO are P/E Ratio, Price/Book, Free Cash Flow.
Key Dynamics to Monitor
SIMO carries more volatility with a beta of 1.70 — expect wider price swings.
SIMO is growing revenue faster at 127.0% — 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
SIMO scores higher overall (78/100 vs 73/100), backed by strong 22.1% margins and 127.0% revenue growth. FTNT offers better value entry with a 43.5% margin of safety. 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.
Silicon Motion Technology
TECHNOLOGY · SEMICONDUCTORS · USA
Silicon Motion Technology Corporation designs, develops and markets NAND flash controllers for solid state storage devices. The company is headquartered in Kowloon, Hong Kong.
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