Head to Head Analysis: Check Point Software Technologies (NASDAQ:CHKP) & Fortinet (NASDAQ:FTNT)

Check Point Software Technologies (NASDAQ:CHKP) and Fortinet (NASDAQ:FTNT) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Check Point Software Technologies and Fortinet’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Check Point Software Technologies	32.48%	33.21%	16.52%
Fortinet	30.60%	148.79%	18.67%

Earnings & Valuation

This table compares Check Point Software Technologies and Fortinet”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Check Point Software Technologies	$2.57 billion	8.07	$845.70 million	$7.68	24.51
Fortinet	$5.96 billion	12.41	$1.75 billion	$2.43	39.74

Fortinet has higher revenue and earnings than Check Point Software Technologies. Check Point Software Technologies is trading at a lower price-to-earnings ratio than Fortinet, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Check Point Software Technologies and Fortinet, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check Point Software Technologies	0	15	11	1	2.48
Fortinet	1	20	11	2	2.41

Check Point Software Technologies presently has a consensus price target of $228.0833, indicating a potential upside of 21.19%. Fortinet has a consensus price target of $107.00, indicating a potential upside of 10.79%. Given Check Point Software Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Check Point Software Technologies is more favorable than Fortinet.

Volatility & Risk

Check Point Software Technologies has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Fortinet has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

98.5% of Check Point Software Technologies shares are owned by institutional investors. Comparatively, 83.7% of Fortinet shares are owned by institutional investors. 29.0% of Check Point Software Technologies shares are owned by company insiders. Comparatively, 17.2% of Fortinet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Fortinet beats Check Point Software Technologies on 8 of the 14 factors compared between the two stocks.

About Check Point Software Technologies

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against fifth generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile. In addition, the company offers security gateways and software platforms that support small and medium sized business. Further, it provides cloud network security, cloud native application protection, security and posture management, cloud identity and entitlement, cloud workload protection, cloud detection and response, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Additionally, the company offers technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products. It sells its products through distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel.

About Fortinet

Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. It offers secure networking solutions focus on the convergence of networking and security; network firewall solutions that consist of FortiGate data centers, hyperscale, and distributed firewalls, as well as encrypted applications; wireless LAN solutions; and secure connectivity solutions, including FortiSwitch secure ethernet switches, FortiAP wireless local area network access points, FortiExtender 5G connectivity gateways, and other products. The company also provides the Fortinet Unified SASE solutions that include firewall, SD-WAN, Secure web gateway, cloud access services broker, data loss prevention, zero trust network access, and cloud security, including web application firewalls, virtualized firewalls, and cloud-native firewalls. In addition, it offers security operations solutions comprising FortiAI generative AI assistant, FortiSIEM security information and event management, FortiSOAR security orchestration, automation and response, FortiEDR endpoint detection and response, FortiXDR extended detection and response, FortiMDR managed detection and response service, FortiNDR network detection and response, FortiRecon digital risk protection, FortiDeceptor deception technology, FortiGuard SoCaaS, FortiSandbox sandboxing, FortiGuard incident response, and other products. Further, the company offers FortiGuard security services consisting of FortiGuard application security, content security, device security, NOC/SOC security, and web security services; FortiCare technical support services; and training services to customers and channel partners, as well as operates a FortiGuard Lab, a cybersecurity threat intelligence and research organization. It serves enterprise, communication and security service providers, government organizations, and small and medium-sized businesses. The company was incorporated in 2000 and is headquartered in Sunnyvale, California.