CACI International (NYSE: CACI) and Fortinet (NASDAQ:FTNT) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CACI International and Fortinet, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CACI International 0 2 8 0 2.80
Fortinet 1 8 18 0 2.63

CACI International presently has a consensus target price of $126.50, indicating a potential downside of 8.17%. Fortinet has a consensus target price of $40.79, indicating a potential upside of 7.60%. Given Fortinet’s higher possible upside, analysts clearly believe Fortinet is more favorable than CACI International.

Insider & Institutional Ownership

88.9% of CACI International shares are held by institutional investors. Comparatively, 69.0% of Fortinet shares are held by institutional investors. 1.2% of CACI International shares are held by insiders. Comparatively, 16.4% of Fortinet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

CACI International has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Fortinet has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares CACI International and Fortinet’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CACI International $4.35 billion 0.77 $365.52 million $6.53 21.09
Fortinet $1.38 billion 4.83 $142.32 million $0.37 102.46

CACI International has higher revenue and earnings than Fortinet. CACI International is trading at a lower price-to-earnings ratio than Fortinet, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CACI International and Fortinet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CACI International 3.76% 9.52% 4.19%
Fortinet 4.71% 9.36% 3.71%

Summary

CACI International beats Fortinet on 8 of the 14 factors compared between the two stocks.

About CACI International

CACI International Inc is a simulation technology company. The Company provides information solutions and services. The Company operates through two segments: domestic operations and international operations. It serves clients in the United States federal government and commercial markets, primarily throughout North America and internationally on behalf of the United States customers, as well as in the United Kingdom and the Netherlands. The Company’s primary customers are agencies and departments of the United States government. The Company’s domestic operations segment provides information solutions and services to its domestic customers in market areas, which include business systems; command and control; communications; cyber security, and enterprise information technology. Its international operations are conducted through its subsidiaries in Europe, including CACI Limited and CACI BV. Its international operations segment provides IT services, and data and software products.

About Fortinet

Fortinet, Inc. is a network security company. The Company provides cyber security solutions to a range of enterprises, service providers and government organizations across the world. Its network security solution consists of FortiGate physical, virtual machine and cloud platforms, which provide integrated security and networking functions to protect data, applications and users from network-and content-level security threats. The Company’s product offerings consist of its FortiGate product family, along with its FortiManager central management and FortiAnalyzer central logging and reporting product families. Its cybersecurity platform includes a range of products, which include its FortiMail e-mail security, FortiSandbox advanced threat protection (ATP), FortiWeb Web application firewall, FortiDDos and FortiDB database security appliances, as well as its FortiClient endpoint security software, FortiAP secure wireless access points and FortiSwitch secure switch connectivity products.

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