Head to Head Comparison: SCWorx (NASDAQ:WORX) and Fortinet (NASDAQ:FTNT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SCWorx	-80.55%	-34.75%	-30.85%
Fortinet	28.17%	191.54%	21.35%

Valuation and Earnings

This table compares SCWorx and Fortinet”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SCWorx	$2.88 million	0.13	-$4.44 million	($28.92)	-0.13
Fortinet	$6.80 billion	18.44	$1.85 billion	$2.84	60.19

Fortinet has higher revenue and earnings than SCWorx. SCWorx 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

SCWorx has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Fortinet has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for SCWorx and Fortinet, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SCWorx	1	0	0	0	1.00
Fortinet	5	21	11	2	2.26

Fortinet has a consensus price target of $161.39, suggesting a potential downside of 5.58%. Given Fortinet’s stronger consensus rating and higher possible upside, analysts clearly believe Fortinet is more favorable than SCWorx.

Institutional and Insider Ownership

1.9% of SCWorx shares are owned by institutional investors. Comparatively, 83.7% of Fortinet shares are owned by institutional investors. 0.4% of SCWorx shares are owned by insiders. Comparatively, 17.6% of Fortinet shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Fortinet beats SCWorx on 13 of the 14 factors compared between the two stocks.

About SCWorx

SCWorx Corp. develops and markets health care information technology solutions and related services to improve healthcare processes and information flow within hospitals and other healthcare facilities in the United States. The company provides data content and services related to repair, normalization, and interoperability of information for healthcare providers, as well as big data analytics for the healthcare industry. It also offers virtualized item master file repair, expansion, and automation; electronic medical record management; charge description master management; contract management; request for proposal automation; rebate management; integration of acquired management; big data analytics modeling; data integration and warehousing; and ScanWorx. In addition, the company focuses on selling personal protective equipment and COVID-19 rapid test kits. It sells its solutions and services to hospitals and health systems through its direct sales force, and distribution and reseller partnerships. SCWorx Corp. is based in New York, New York.

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.