Extreme vs Fortinet Which Should You Buy?

Extreme Networks Inc. (EXTR) and Fortinet Inc. (FTNT) are two prominent players in the cybersecurity industry, but their stock performance presents stark contrasts. Extreme Networks has seen a steady decline in stock value over the past year, plagued by financial woes and management shakeups. In contrast, Fortinet has shown impressive growth, with strong revenue numbers and a robust product portfolio driving investor confidence. As the cybersecurity sector continues to evolve, investors must carefully consider the contrasting trajectories of Extreme Networks and Fortinet stocks.

Extreme or Fortinet?

When comparing Extreme and Fortinet, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Extreme and Fortinet.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Extreme has a dividend yield of 2.75%, while Fortinet has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Extreme reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Fortinet reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Extreme P/E ratio at 7.82 and Fortinet's P/E ratio at 49.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Extreme P/B ratio is 1.44 while Fortinet's P/B ratio is 83.58.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Extreme has seen a 5-year revenue growth of 0.58%, while Fortinet's is 2.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Extreme's ROE at 19.26% and Fortinet's ROE at 1027.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1345.00 for Extreme and $98.19 for Fortinet. Over the past year, Extreme's prices ranged from ¥866.00 to ¥1412.00, with a yearly change of 63.05%. Fortinet's prices fluctuated between $50.97 and $100.59, with a yearly change of 97.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.