Fortinet vs SSE Which Is a Better Investment?

Fortinet Inc. and SSE plc are two companies in the technology and energy sectors, each with unique characteristics that attract investors. Fortinet is a leading provider of cybersecurity solutions, offering cutting-edge technology to protect organizations from cyber threats. On the other hand, SSE is a prominent energy company, specializing in electricity generation and distribution. Both stocks have shown strong performance in recent years, making them popular choices for investors looking to diversify their portfolios in these industries.

Fortinet or SSE?

When comparing Fortinet and SSE, 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 SSE.

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 SSE has a dividend yield of 4.42%. 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, SSE reports a 5-year dividend growth of -1.25% year and a payout ratio of 53.66%.

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 SSE's P/E ratio at 11.01. 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 SSE's P/B ratio is 2.05.

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 SSE's is -0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fortinet's ROE at 1027.81% and SSE's ROE at 19.77%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.30 for Fortinet and $22.11 for SSE. Over the past year, Fortinet's prices ranged from $49.70 to $97.35, with a yearly change of 95.88%. SSE's prices fluctuated between $19.63 and $27.01, with a yearly change of 37.60%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.