Arrow Electronics (NYSE:ARW) and Fortinet (NASDAQ:FTNT) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Profitability
This table compares Arrow Electronics and Fortinet's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Arrow Electronics | 1.67% | 11.49% | 3.49% |
Fortinet | 18.50% | 48.30% | 10.74% |
Risk and Volatility
Arrow Electronics has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Fortinet has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Arrow Electronics and Fortinet, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Arrow Electronics | 0 | 6 | 1 | 0 | 2.14 |
Fortinet | 3 | 11 | 12 | 0 | 2.35 |
Arrow Electronics presently has a consensus price target of $80.50, indicating a potential downside of 30.92%. Fortinet has a consensus price target of $161.1667, indicating a potential downside of 21.59%. Given Fortinet's stronger consensus rating and higher possible upside, analysts plainly believe Fortinet is more favorable than Arrow Electronics.
Valuation & Earnings
This table compares Arrow Electronics and Fortinet's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Arrow Electronics | $28.92 billion | 0.30 | $-204,090,000.00 | $7.55 | 15.43 |
Fortinet | $2.16 billion | 15.56 | $326.50 million | $1.91 | 107.61 |
Fortinet has lower revenue, but higher earnings than Arrow Electronics. Arrow Electronics is trading at a lower price-to-earnings ratio than Fortinet, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
94.5% of Arrow Electronics shares are owned by institutional investors. Comparatively, 67.8% of Fortinet shares are owned by institutional investors. 1.6% of Arrow Electronics shares are owned by insiders. Comparatively, 17.2% of Fortinet shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Fortinet beats Arrow Electronics on 10 of the 14 factors compared between the two stocks.