Fortinet (NASDAQ: FTNT) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Fortinet to related businesses based on the strength of its risk, valuation, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Risk & Volatility

Fortinet has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Fortinet’s peers have a beta of 1.27, indicating that their average share price is 27% more volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Fortinet $1.38 billion $142.32 million 105.22
Fortinet Competitors $2.12 billion $367.64 million 16.74

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

Profitability

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

Net Margins Return on Equity Return on Assets
Fortinet 4.71% 9.36% 3.71%
Fortinet Competitors -21.17% -51.42% -4.82%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Fortinet and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortinet 1 5 13 0 2.63
Fortinet Competitors 679 4429 7442 166 2.56

Fortinet presently has a consensus price target of $42.35, suggesting a potential upside of 8.79%. As a group, “IT Services & Consulting” companies have a potential downside of 0.37%. Given Fortinet’s stronger consensus rating and higher possible upside, analysts clearly believe Fortinet is more favorable than its peers.

Insider & Institutional Ownership

69.0% of Fortinet shares are held by institutional investors. Comparatively, 62.5% of shares of all “IT Services & Consulting” companies are held by institutional investors. 17.0% of Fortinet shares are held by company insiders. Comparatively, 16.2% of shares of all “IT Services & Consulting” companies are held by company 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.

Summary

Fortinet beats its peers on 9 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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