Perfect (NYSE:PERF – Get Free Report) and Fortinet (NASDAQ:FTNT – Get Free Report) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Profitability
This table compares Perfect and Fortinet’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Perfect | 8.13% | 3.73% | 2.98% |
| Fortinet | 28.96% | 152.72% | 21.36% |
Analyst Ratings
This is a summary of current ratings for Perfect and Fortinet, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Perfect | 1 | 2 | 0 | 0 | 1.67 |
| Fortinet | 6 | 24 | 11 | 0 | 2.12 |
Fortinet has a consensus price target of $150.44, indicating a potential upside of 22.36%. Given Fortinet’s stronger consensus rating and higher probable upside, analysts plainly believe Fortinet is more favorable than Perfect.
Valuation & Earnings
This table compares Perfect and Fortinet”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Perfect | $71.07 million | 2.85 | $4.64 million | $0.06 | 33.17 |
| Fortinet | $6.80 billion | 13.29 | $1.85 billion | $3.08 | 39.92 |
Fortinet has higher revenue and earnings than Perfect. Perfect is trading at a lower price-to-earnings ratio than Fortinet, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Perfect has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Fortinet has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
Institutional and Insider Ownership
83.7% of Fortinet shares are owned by institutional investors. 44.7% of Perfect shares are owned by company insiders. Comparatively, 17.6% of Fortinet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Fortinet beats Perfect on 13 of the 14 factors compared between the two stocks.
About Perfect
Perfect Corp. (NYSE: PERF) is a technology company that develops artificial intelligence and augmented reality solutions for the beauty, fashion and consumer industries. Its platform enables digital experiences such as virtual makeup and hair-color try-ons, skin analysis, product discovery and personalized recommendations. The company offers its technology through consumer applications, including the YouCam suite, as well as enterprise software and tools designed for beauty brands, retailers and other businesses.
About Fortinet
Fortinet, Inc. is a cybersecurity and networking company that provides products and services to help organizations protect their networks, devices, applications, and cloud environments. Its offerings include FortiGate next-generation firewalls, the FortiOS operating system, and security, endpoint, cloud, and secure access service edge (SASE) solutions. The company’s Security Fabric platform is designed to integrate security and networking products and support centralized visibility and management.
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