Fortinet vs Extreme Which Is More Promising?

Fortinet and Extreme Networks are two leading companies in the cybersecurity and networking industry. Fortinet is known for its advanced security solutions, including firewalls, intrusion prevention systems, and threat intelligence services. Extreme Networks specializes in networking solutions such as switches, routers, and wireless access points. Both companies have experienced growth in recent years, however, their stock performance has varied. Investors looking to invest in the cybersecurity or networking sector may want to compare the financial performance, market share, and growth potential of Fortinet and Extreme Networks stocks.

Fortinet or Extreme?

When comparing Fortinet and Extreme, 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 Fortinet and Extreme.

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. Fortinet has a dividend yield of -%, while Extreme has a dividend yield of 3.41%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Fortinet reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Extreme 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 Fortinet P/E ratio at 48.51 and Extreme's P/E ratio at 6.33. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Fortinet P/B ratio is 81.73 while Extreme's P/B ratio is 1.17.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.30 for Fortinet and ¥1116.00 for Extreme. Over the past year, Fortinet's prices ranged from $49.70 to $97.35, with a yearly change of 95.88%. Extreme's prices fluctuated between ¥866.00 and ¥1393.00, with a yearly change of 60.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.