Reviewing Fortinet (NASDAQ:FTNT) & Datasea (NASDAQ:DTSS)

Fortinet (NASDAQ:FTNT) and Datasea (NASDAQ:DTSS) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Volatility and Risk

Fortinet has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

83.7% of Fortinet shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 17.6% of Fortinet shares are owned by company insiders. Comparatively, 50.7% of Datasea shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Fortinet and Datasea, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fortinet	5	20	9	2	2.22
Datasea	1	0	0	0	1.00

Fortinet presently has a consensus price target of $150.91, indicating a potential downside of 3.44%. Given Fortinet’s stronger consensus rating and higher possible upside, analysts clearly believe Fortinet is more favorable than Datasea.

Valuation and Earnings

This table compares Fortinet and Datasea”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fortinet	$6.80 billion	16.86	$1.85 billion	$2.84	55.03
Datasea	$40.70 million	0.17	-$5.09 million	($0.32)	-2.06

Fortinet has higher revenue and earnings than Datasea. Datasea 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 Fortinet and Datasea’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fortinet	28.17%	191.54%	21.35%
Datasea	-4.80%	-88.98%	-37.33%

Summary

Fortinet beats Datasea on 14 of the 15 factors compared between the two stocks.

About Fortinet

Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products. The company also provides the Fortinet Unified SASE solutions that include firewall, SD-WAN, Secure web gateway, cloud access services broker, data loss prevention, zero trust network access, and cloud security, including web application firewalls, virtualized firewalls, and cloud-native firewalls. In addition, it offers security operations solutions comprising FortiAI generative AI assistant, FortiSIEM security information and event management, FortiSOAR security orchestration, automation and response, FortiEDR endpoint detection and response, FortiXDR extended detection and response, FortiMDR managed detection and response service, FortiNDR network detection and response, FortiRecon digital risk protection, FortiDeceptor deception technology, FortiGuard SoCaaS, FortiSandbox sandboxing, FortiGuard incident response, and other products. Further, the company offers FortiGuard security services consisting of FortiGuard application security, content security, device security, NOC/SOC security, and web security services; FortiCare technical support services; and training services to customers and channel partners, as well as operates a FortiGuard Lab, a cybersecurity threat intelligence and research organization. It serves enterprise, communication and security service providers, government organizations, and small and medium-sized businesses. The company was incorporated in 2000 and is headquartered in Sunnyvale, California.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.