Stratasys (NASDAQ: FTNT) and Fortinet (NASDAQ:FTNT) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Risk & Volatility
Stratasys has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Fortinet has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
This table compares Stratasys and Fortinet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations for Stratasys and Fortinet, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Stratasys presently has a consensus price target of $22.50, indicating a potential downside of 2.13%. Fortinet has a consensus price target of $66.95, indicating a potential downside of 25.90%. Given Stratasys’ higher possible upside, research analysts clearly believe Stratasys is more favorable than Fortinet.
Insider and Institutional Ownership
76.5% of Stratasys shares are held by institutional investors. Comparatively, 71.2% of Fortinet shares are held by institutional investors. 4.3% of Stratasys shares are held by insiders. Comparatively, 17.7% of Fortinet shares are held 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.
Earnings and Valuation
This table compares Stratasys and Fortinet’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stratasys||$668.36 million||1.85||-$38.27 million||$0.13||176.85|
|Fortinet||$1.49 billion||10.22||$31.39 million||$0.52||173.75|
Fortinet has higher revenue and earnings than Stratasys. Fortinet is trading at a lower price-to-earnings ratio than Stratasys, indicating that it is currently the more affordable of the two stocks.
Fortinet beats Stratasys on 10 of the 14 factors compared between the two stocks.
Stratasys Ltd. provides 3D printing and additive manufacturing solutions for individuals, small and large businesses, and enterprises. Its 3D printing systems utilize its fused deposition modeling (FDM) and inkjet-based PolyJet technologies to enable the production of prototypes, tools used for production and manufactured goods directly from 3D CAD files or other 3D content. The company offers entry-level desktop 3D printers to systems for rapid prototyping, and production systems for direct digital manufacturing. It also provides 3D printing consumable materials, including FDM cartridge-based materials, PolyJet cartridge-based materials, non-color digital materials, and color variations; and downloadable and cloud-based professional 3D printing workflow software, as well as suites of software with various 3D printing systems. In addition, the company offers customer support, basic warranty, and extended support programs; leases or rents 3D printers and 3D production systems; produces prototypes and end-use parts for customers from a customer-provided CAD file; and provides plastic and metal parts for rapid prototyping and production processes, as well as related professional services. Further, it operates Thingiverse, an online community for sharing downloadable, digital 3D designs; and GrabCAD Community, a resource of CAD models for mechanical engineers and designers. The company's products and services are primarily used in automotive, aerospace, medical, dental, jewelry, and education markets. Stratasys Ltd. sells its products through a network of resellers and independent sales agents worldwide. The company was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
Fortinet, Inc. provides broad, automated, and integrated cybersecurity solutions worldwide. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, Web filtering, anti-spam, and WAN acceleration; and FortiSandbox technology that delivers proactive detection and mitigation services; and FortiSIEM family of products, which offers a cloud-ready security information and event management solution for enterprises and service providers. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers end devices, such as computers and laptops, as well as an expanding field of Internet of Things devices; and Fortinet Management and Analysis products consisting of FortiManager and FortiAnalyzer hardware and software products. In addition, it provides security subscription, technical support, professional, and training services. The company sells its security solutions to channel partners; and directly to end-customers, including small and medium-sized businesses, large enterprises, and government organizations in a range of industries consisting of telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare. Fortinet, Inc. was founded in 2000 and is headquartered in Sunnyvale, California.
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