Fortinet (NASDAQ:FTNT – Get Free Report) and AvePoint (NASDAQ:AVPT – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Profitability
This table compares Fortinet and AvePoint’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fortinet | 28.96% | 152.72% | 21.36% |
| AvePoint | 15.67% | 17.11% | 10.16% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Fortinet and AvePoint, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fortinet | 6 | 24 | 11 | 0 | 2.12 |
| AvePoint | 0 | 5 | 10 | 0 | 2.67 |
Fortinet currently has a consensus target price of $150.44, indicating a potential upside of 22.84%. AvePoint has a consensus target price of $18.00, indicating a potential upside of 7.08%. Given Fortinet’s higher possible upside, research analysts plainly believe Fortinet is more favorable than AvePoint.
Earnings and Valuation
This table compares Fortinet and AvePoint”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fortinet | $7.88 billion | 11.42 | $1.85 billion | $3.08 | 39.76 |
| AvePoint | $466.15 million | 7.63 | $34.80 million | $0.34 | 49.44 |
Fortinet has higher revenue and earnings than AvePoint. Fortinet is trading at a lower price-to-earnings ratio than AvePoint, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
83.7% of Fortinet shares are held by institutional investors. Comparatively, 44.5% of AvePoint shares are held by institutional investors. 17.6% of Fortinet shares are held by company insiders. Comparatively, 22.7% of AvePoint shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Fortinet has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, AvePoint has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
Summary
Fortinet beats AvePoint on 10 of the 14 factors compared between the two stocks.
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.
About AvePoint
AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. It also offers software-as-a-service solutions and productivity applications. The company offers modularity and cloud services architecture to address critical challenges and the management of data to organizations that leverage third-party cloud vendors, including Microsoft, Salesforce, Google, AWS, Box, DropBox, and others; license and support; and maintenance services. AvePoint, Inc. was incorporated in 2001 and is headquartered in Jersey City, New Jersey.
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