Fortinet (NASDAQ: FTNT) and Key Tronic (NASDAQ:KTCC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Institutional & Insider Ownership
69.5% of Fortinet shares are owned by institutional investors. Comparatively, 42.6% of Key Tronic shares are owned by institutional investors. 16.4% of Fortinet shares are owned by insiders. Comparatively, 7.2% of Key Tronic shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Fortinet has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Key Tronic has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500.
Earnings & Valuation
This table compares Fortinet and Key Tronic’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fortinet||$1.49 billion||6.58||$31.39 million||$0.52||112.54|
|Key Tronic||$467.80 million||0.19||$5.61 million||$0.51||16.25|
Fortinet has higher revenue and earnings than Key Tronic. Key Tronic is trading at a lower price-to-earnings ratio than Fortinet, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Fortinet and Key Tronic, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fortinet presently has a consensus target price of $54.27, suggesting a potential downside of 7.26%. Given Fortinet’s higher possible upside, analysts plainly believe Fortinet is more favorable than Key Tronic.
This table compares Fortinet and Key Tronic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Fortinet beats Key Tronic on 13 of the 13 factors compared between the two stocks.
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.
About Key Tronic
Key Tronic Corporation, doing business as KeyTronicEMS Co., provides electronic manufacturing services (EMS) and solutions to original equipment manufacturers in the United States and internationally. The company offers integrated electronic and mechanical engineering, assembly, sourcing and procurement, logistics, and new product testing services. Its services include product design; surface mount technologies and pin through hole capability for printed circuit board assembly; tool making; precision plastic molding; sheet metal fabrication; liquid injection molding; complex assembly; automated tape winding; prototype design; and full product assembly services. The company also manufactures keyboards and other input devices. It markets its products and services primarily through field sales people and distributors. Key Tronic Corporation was founded in 1969 and is headquartered in Spokane Valley, Washington.
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