Fortinet, Inc. (FTNT) vs Block, Inc. (XYZ)

Fortinet, Inc. and Block, Inc. are both Software Infrastructure companies. Fortinet, Inc. is the larger, with a market value of $90.0B against $50.8B — 1.8× the size. Fortinet, Inc. trades at the lower P/E: 39.5× against 112×. Fortinet, Inc. grew revenue faster over the last twelve months: 20.2% against 6.98%. Fortinet, Inc. has the higher net margin (29.0% vs 1.80%) and the lower return on invested capital (0.00% vs 3.58%). Across the 22 metrics below, Fortinet, Inc. leads on 14 and Block, Inc. on 8.

Valuation

Metric FTNT XYZ Software Infrastructure median
P/E 39.49 111.61 24.43
P/S 11.40 1.98 2.81
P/B 40.00 2.22 2.88
Price to free cash flow 26.19 14.73 17.94
EV/EBITDA 27.59 135.86 14.51
EV/Sales 10.92 1.96 2.91
Earnings yield 2.53% 0.90% 0.00%
Free cash flow yield 3.82% 6.79% 0.49%

Profitability

Metric FTNT XYZ Software Infrastructure median
Gross margin 79.75% 47.50% 57.45%
Operating margin 32.98% 4.64% 0.00%
Net margin 28.96% 1.80% 0.00%
Free cash flow margin 43.54% 13.47% 0.00%
Return on equity 153.08% 2.03% 0.00%
Return on assets 21.43% 1.15% 0.00%
Return on invested capital 0.00% 3.58% 0.00%

Growth

Metric FTNT XYZ Software Infrastructure median
Revenue growth (TTM) 20.23% 6.98% 14.28%
EPS growth (last fiscal year) 7.08% (53.95%) 18.26%
Revenue growth, 5-year CAGR 21.25% 20.56% 16.15%
Net income growth, 5-year CAGR 30.56% 43.70% 0.00%

Health

Metric FTNT XYZ Software Infrastructure median
Debt to equity 0.22 0.25 0.02
Current ratio 1.40 2.23 1.53
Net debt to EBITDA (1.02) 0.22 0.05

Dividend

Metric FTNT XYZ Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric FTNT XYZ Software Infrastructure median
Market cap 90.01b 50.80b 661.51m

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