WallStSmart

Fortinet Inc (FTNT)vsZoom Video Communications Inc (ZM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Fortinet Inc generates 51% more annual revenue ($7.53B vs $4.99B). ZM leads profitability with a 65.2% profit margin vs 28.2%. FTNT appears more attractively valued with a PEG of 1.74. 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

ZM

Strong Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 8.5Value: 5.7Quality: 9.0
Piotroski: 4/9Altman Z: 5.15
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FTNTUndervalued (+43.5%)

Margin of Safety

+43.5%

Fair Value

$276.16

Current Price

$156.07

$120.09 discount

UndervaluedFair: $276.16Overvalued

Intrinsic value data unavailable for ZM.

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
$114.51B9/10

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

ZM6 strengths · Avg: 9.8/10
P/E RatioValuation
8.9x10/10

Attractively priced relative to earnings

Profit MarginProfitability
65.2%10/10

Keeps 65 of every $100 in revenue as profit

EPS GrowthGrowth
342.3%10/10

Earnings expanding 342.3% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
5.1510/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
28.8%9/10

Every $100 of equity generates 29 in profit

Areas to Watch

FTNT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.744/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.504/10

Distress zone — elevated risk

P/E RatioValuation
56.1x2/10

Premium valuation, high expectations priced in

Price/BookValuation
74.0x2/10

Trading at 74.0x book value

ZM2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

PEG RatioValuation
2.722/10

Expensive relative to growth rate

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 : ZM

The strongest argument for ZM centers on P/E Ratio, Profit Margin, EPS Growth. Profitability is solid with margins at 65.2% and operating margin at 24.6%.

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 : ZM

The primary concerns for ZM are Revenue Growth, PEG Ratio.

Key Dynamics to Monitor

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

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.

Bottom Line

FTNT scores higher overall (73/100 vs 71/100), 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.

Zoom Video Communications Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.

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