Fortinet (NASDAQ: FTNT) is one of 195 public companies in the “IT Services & Consulting” industry, but how does it contrast to its competitors? We will compare Fortinet to similar companies based on the strength of its valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Institutional and Insider Ownership

69.2% of Fortinet shares are owned by institutional investors. Comparatively, 60.8% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 16.4% of Fortinet shares are owned by insiders. Comparatively, 16.9% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Fortinet and its competitors’ 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 -19.79% -51.65% -3.66%

Earnings & Valuation

This table compares Fortinet and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Fortinet $1.28 billion $32.18 million 81.27
Fortinet Competitors $2.74 billion $282.94 million 26.81

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

Risk and Volatility

Fortinet has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Fortinet’s competitors have a beta of 1.26, suggesting that their average share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Fortinet and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortinet 1 4 14 0 2.68
Fortinet Competitors 690 4386 7139 155 2.55

Fortinet currently has a consensus target price of $43.59, indicating a potential upside of 11.74%. As a group, “IT Services & Consulting” companies have a potential upside of 3.14%. Given Fortinet’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Fortinet is more favorable than its competitors.

Summary

Fortinet beats its competitors on 8 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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