AstroNova (ALOT) versus Fortinet (FTNT) Head to Head Analysis

AstroNova (NASDAQ:ALOT) and Fortinet (NASDAQ:FTNT) are both business services companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Dividends

AstroNova pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Fortinet does not pay a dividend. AstroNova pays out 44.4% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
AstroNova 3.20% 8.08% 4.41%
Fortinet 7.05% 20.52% 6.06%

Analyst Ratings

This is a breakdown of recent ratings and price targets for AstroNova and Fortinet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AstroNova 0 0 1 0 3.00
Fortinet 1 14 10 0 2.36

Fortinet has a consensus price target of $78.52, indicating a potential upside of 4.61%. Given Fortinet’s higher possible upside, analysts clearly believe Fortinet is more favorable than AstroNova.

Institutional & Insider Ownership

57.0% of AstroNova shares are held by institutional investors. Comparatively, 71.4% of Fortinet shares are held by institutional investors. 10.4% of AstroNova shares are held by company insiders. Comparatively, 17.7% of Fortinet shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares AstroNova and Fortinet’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AstroNova $113.40 million 1.18 $3.28 million $0.63 30.71
Fortinet $1.49 billion 8.49 $31.39 million $0.52 144.35

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

Volatility and Risk

AstroNova has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, Fortinet has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Summary

Fortinet beats AstroNova on 13 of the 16 factors compared between the two stocks.

About AstroNova

AstroNova, Inc. designs, develops, manufactures, and distributes specialty printers, and data acquisition and analysis systems in the United States, Canada, Asia, Europe, Central and South America, and internationally. The company operates through two segments, Product Identification and Test & Measurement (T&M). The Product Identification segment offers tabletop and work cell-ready digital color label printers; specialty OEM printing systems; and labels, tags, inks, toner, and thermal transfer ribbons under the QuickLabel brand. This segment also offers T2-C, an inkjet table top label press; T2, a parent of the T2-C; T4 for print, die cut, and lamination; and T3, a customizable label production and finishing press under the TrojanLabel brand. In addition, this segment sells various specialized software used to operate the printers and presses, design labels, and manage printing on an automated basis. It serves chemicals, cosmetics, food and beverage, medical products, pharmaceuticals, and other industries, as well as brand owners, label converters, commercial printers, and packaging manufacturers. The T&M segment offers visual data from local and networked data streams and sensors; a range of hardware and software products under the AstroNova T&M brand; Daxus portable data acquisition systems; TMX high-speed data acquisition systems; DDX100 SmartCorder portable data acquisition systems; EV-500, a digital strip chart recording system; PTA-45B cockpit printers; and ToughWriter, Miltope, and RITEC branded airborne printers. Its AstroNova airborne printers are used in flight decks, as well as military, commercial, and business aircraft cabins; and ToughSwitch Ethernet switches used in military aircraft and vehicles. The company was formerly known as Astro-Med, Inc. and changed its name to AstroNova, Inc. in May 2016. The company was founded in 1969 and is headquartered in West Warwick, Rhode Island.

About Fortinet

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.

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