Fortinet (NASDAQ: FTNT) is one of 187 public companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare Fortinet to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Fortinet and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortinet 5.93% 10.92% 4.24%
Fortinet Competitors -11.61% -32.43% -0.71%

Analyst Ratings

This is a summary of current recommendations for Fortinet and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortinet 1 4 14 0 2.68
Fortinet Competitors 684 4354 6964 149 2.54

Fortinet currently has a consensus price target of $43.59, suggesting a potential upside of 9.33%. As a group, “IT Services & Consulting” companies have a potential upside of 2.99%. Given Fortinet’s stronger consensus rating and higher possible upside, equities analysts clearly believe Fortinet is more favorable than its rivals.

Insider and Institutional Ownership

69.4% of Fortinet shares are held by institutional investors. Comparatively, 61.1% of shares of all “IT Services & Consulting” companies are held by institutional investors. 16.4% of Fortinet shares are held by insiders. Comparatively, 17.0% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Fortinet has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Fortinet’s rivals have a beta of 1.10, indicating that their average share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares Fortinet and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Fortinet $1.28 billion $32.18 million 83.06
Fortinet Competitors $2.90 billion $306.97 million 244.61

Fortinet’s rivals have higher revenue and earnings than Fortinet. Fortinet is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Fortinet beats its rivals on 7 of the 13 factors compared.

Fortinet Company Profile

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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