Head-To-Head Review: Black Knight (NYSE:BKFS) versus Fortinet (FTNT)

Fortinet (NASDAQ: FTNT) and Black Knight (NYSE:BKFS) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for Fortinet and Black Knight, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortinet 1 4 14 0 2.68
Black Knight 0 1 6 0 2.86

Fortinet currently has a consensus price target of $43.59, suggesting a potential upside of 9.13%. Black Knight has a consensus price target of $46.50, suggesting a potential upside of 8.01%. Given Fortinet’s higher probable upside, equities research analysts clearly believe Fortinet is more favorable than Black Knight.

Earnings and Valuation

This table compares Fortinet and Black Knight’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Fortinet $1.28 billion 5.45 $32.18 million $0.48 83.21
Black Knight N/A N/A N/A $0.63 68.33

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

Profitability

This table compares Fortinet and Black Knight’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortinet 5.93% 10.92% 4.24%
Black Knight 11.14% 3.77% 3.14%

Insider & Institutional Ownership

69.4% of Fortinet shares are held by institutional investors. Comparatively, 44.7% of Black Knight shares are held by institutional investors. 16.4% of Fortinet shares are held by insiders. Comparatively, 30.8% of Black Knight shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Fortinet beats Black Knight on 6 of the 10 factors compared between the two stocks.

About Fortinet

Fortinet, Inc. is a network security company. The Company provides cyber security solutions to a range of enterprises, service providers and government organizations across the world. Its network security solution consists of FortiGate physical, virtual machine and cloud platforms, which provide integrated security and networking functions to protect data, applications and users from network-and content-level security threats. The Company’s product offerings consist of its FortiGate product family, along with its FortiManager central management and FortiAnalyzer central logging and reporting product families. Its cybersecurity platform includes a range of products, which include its FortiMail e-mail security, FortiSandbox advanced threat protection (ATP), FortiWeb Web application firewall, FortiDDos and FortiDB database security appliances, as well as its FortiClient endpoint security software, FortiAP secure wireless access points and FortiSwitch secure switch connectivity products.

About Black Knight

Black Knight Financial Services, Inc. is a holding company. The Company, through its subsidiaries, provides integrated technology, workflow automation, and data and analytics to the mortgage and real estate industries. The Company’s segments include Technology, and Data and Analytics. The Company’s Technology segment offers software and hosting solutions that support loan servicing, loan origination and settlement services. The Technology segment provides applications and services, such as servicing technology and origination technology. Its Data and Analytics segment offers data and analytics solutions to the mortgage, real estate and capital markets industries. These solutions include property ownership data, lien data, servicing data, automated valuation models, collateral risk scores, prepayment and default models, lead generation and other data solutions.

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