Fortinet (FTNT) vs. 21Vianet Group (VNET) Head to Head Analysis

Fortinet (NASDAQ: FTNT) and 21Vianet Group (NASDAQ:VNET) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Fortinet and 21Vianet Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortinet 1 10 12 0 2.48
21Vianet Group 0 1 1 0 2.50

Fortinet presently has a consensus target price of $47.48, suggesting a potential downside of 1.34%. 21Vianet Group has a consensus target price of $8.50, suggesting a potential upside of 8.01%. Given 21Vianet Group’s stronger consensus rating and higher probable upside, analysts plainly believe 21Vianet Group is more favorable than Fortinet.

Insider & Institutional Ownership

70.7% of Fortinet shares are held by institutional investors. Comparatively, 19.3% of 21Vianet Group shares are held by institutional investors. 17.0% of Fortinet shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Fortinet and 21Vianet Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortinet $1.49 billion 5.60 $31.39 million $0.17 283.06
21Vianet Group $524.53 million 1.68 -$91.25 million ($2.91) -2.70

Fortinet has higher revenue and earnings than 21Vianet Group. 21Vianet Group is trading at a lower price-to-earnings ratio than Fortinet, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Fortinet has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, 21Vianet Group has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Profitability

This table compares Fortinet and 21Vianet Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortinet 2.10% 11.77% 4.20%
21Vianet Group -57.80% -3.50% -1.62%

Summary

Fortinet beats 21Vianet Group on 10 of the 13 factors compared between the two stocks.

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.

21Vianet Group Company Profile

21Vianet Group, Inc. is a carrier-neutral Internet data center services provider. The Company hosts its customers’ servers and networking equipment and provides interconnectivity. The Company also provides managed network services to enable customers to deliver data across the Internet through its data transmission network and smart routing technology. The Company provides value-added services, such as content delivery network (CDN) services, virtual private network (VPN) services and last-mile wired broadband services. It offers public cloud services, private cloud and hybrid services. In addition, the Company also offers container-based data center service. The Company’s service offerings include hosting and related services, and managed network services. The Company provides hosting and related services to house servers and networking equipment in its data centers and connects them through its data transmission network, and offers other hosting related value-added services.

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