Head to Head Review: Fortinet (FTNT) vs. Top Image Systems (TISA)

Fortinet (NASDAQ: FTNT) and Top Image Systems (NASDAQ:TISA) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Fortinet and Top Image Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortinet 1 13 9 0 2.35
Top Image Systems 0 0 1 0 3.00

Fortinet currently has a consensus target price of $55.75, suggesting a potential downside of 12.80%. Top Image Systems has a consensus target price of $3.00, suggesting a potential upside of 191.26%. Given Top Image Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Top Image Systems is more favorable than Fortinet.

Volatility and Risk

Fortinet has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Top Image Systems has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Fortinet and Top Image Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortinet 4.01% 14.64% 4.83%
Top Image Systems -22.20% -40.66% -19.24%

Insider and Institutional Ownership

69.1% of Fortinet shares are owned by institutional investors. Comparatively, 3.8% of Top Image Systems shares are owned by institutional investors. 17.7% of Fortinet shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Fortinet and Top Image Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortinet $1.49 billion 7.19 $31.39 million $0.52 122.94
Top Image Systems $29.67 million 0.63 -$6.58 million ($0.37) -2.78

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

Summary

Fortinet beats Top Image Systems on 11 of the 14 factors compared between the two stocks.

Fortinet Company Profile

Fortinet, Inc. provides broad, automated, and integrated cybersecurity solutions worldwide. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, Web filtering, anti-spam, and WAN acceleration; and FortiSandbox technology that delivers proactive detection and mitigation services; and FortiSIEM family of products, which offers a cloud-ready security information and event management solution for enterprises and service providers. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers end devices, such as computers and laptops, as well as an expanding field of Internet of Things devices; and Fortinet Management and Analysis products consisting of FortiManager and FortiAnalyzer hardware and software products. In addition, it provides security subscription, technical support, professional, and training services. The company sells its security solutions to channel partners; and directly to end-customers, including small and medium-sized businesses, large enterprises, and government organizations in a range of industries consisting of telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare. Fortinet, Inc. was founded in 2000 and is headquartered in Sunnyvale, California.

Top Image Systems Company Profile

Top Image Systems Ltd. develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees worldwide. Its solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. The company's products integrate information regardless of the source and format of the data, such as invoices, purchase orders, checks, freight and shipping bills, and others. Its solutions deliver the extracted data to applications comprising document and content management, enterprise resource planning, or customer relationship management. The company develops and markets its software solutions to a range of customers that automatically classifies, recognizes, and understands data processed into the organization systems. It processes, validates, and integrates data into ERP, CRM, and workflow systems. Its eFLOW Unified Content platform solution performs business-critical key data capture, lying within incoming documents, such as paper forms, eForms, fax, image files, microfiche, and electronic. The company serves end-user customers, value-added resellers, distributors, and system integrators. Top Image Systems Ltd. was founded in 1991 and is headquartered in Ramat Gan, Israel.

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