Fortinet vs Zscaler Which Is More Reliable?

Fortinet and Zscaler are two leading companies in the cybersecurity industry, both offering innovative solutions to protect businesses from cyber threats. Fortinet, a well-established player in the market, provides a range of security products such as firewalls, antivirus, and intrusion prevention systems. On the other hand, Zscaler offers cloud-based security solutions that are designed to secure users, devices, and applications regardless of their location. Investors may look to these stocks for their potential for growth and stability in the ever-evolving cybersecurity sector.

Fortinet or Zscaler?

When comparing Fortinet and Zscaler, 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 Zscaler.

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 Zscaler has a dividend yield of -%. 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, Zscaler 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 Zscaler's P/E ratio at -523.86. 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 Zscaler's P/B ratio is 23.73.

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 Zscaler's is 2.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Fortinet's ROE at 1027.81% and Zscaler's ROE at -5.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.30 for Fortinet and $195.05 for Zscaler. Over the past year, Fortinet's prices ranged from $49.70 to $97.35, with a yearly change of 95.88%. Zscaler's prices fluctuated between $153.45 and $259.61, with a yearly change of 69.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.