Fortinet Inc. (FTNT)’s Financial Results Comparing With NIC Inc. (NASDAQ:EGOV)

This is a contrast between Fortinet Inc. (NASDAQ:FTNT) and NIC Inc. (NASDAQ:EGOV) based on their profitability, analyst recommendations, risk, dividends, earnings and valuation, institutional ownership. The two companies are Application Software and they also compete with each other.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortinet Inc. 1.80B 7.80 332.20M 1.06 70.54
NIC Inc. 344.90M 3.35 58.27M 0.89 14.06

Table 1 shows top-line revenue, earnings per share (EPS) and valuation of the two companies. NIC Inc. is observed to has lower revenue and earnings than Fortinet Inc. Presently more expensive of the two stocks is the business with a higher price-to-earnings ratio. Fortinet Inc.’s current price-to-earnings ratio is higher than that of NIC Inc., which means that it is the expensive of the two.

Profitability

Table 2 provides the return on assets, return on equity and net margins of the two firms.

Net Margins Return on Equity Return on Assets
Fortinet Inc. 18.46% 16.3% 4.8%
NIC Inc. 16.89% 31.4% 19.7%

Volatility and Risk

Fortinet Inc. is 18.00% less volatile than S&P 500 due to its 0.82 beta. NIC Inc.’s 30.00% less volatile than S&P 500 which is a result of the 0.7 beta.

Liquidity

Fortinet Inc.’s Current Ratio is 1.9 while its Quick Ratio is 1.8. On the competitive side is, NIC Inc. which has a 2.8 Current Ratio and a 2.8 Quick Ratio. NIC Inc. is better positioned to pay off short and long-term obligations compared to Fortinet Inc.

Dividends

The dividend yield for NIC Inc. is 1.87% while its annual dividend payout is $0.32 per share. Fortinet Inc. does not offer a dividend.

Analyst Ratings

Fortinet Inc. and NIC Inc. Ratings and Recommendations are available on the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Fortinet Inc. 1 6 3 2.30
NIC Inc. 0 0 0 0.00

The upside potential is 1.77% for Fortinet Inc. with average price target of $83.88.

Institutional and Insider Ownership

The shares of both Fortinet Inc. and NIC Inc. are owned by institutional investors at 72.4% and 92.9% respectively. Fortinet Inc.’s share owned by insiders are 11.2%. Comparatively, NIC Inc. has 0.2% of it’s share owned by insiders.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Fortinet Inc. 1.16% -4.06% -14.97% 18.1% 80.35% 70.98%
NIC Inc. -3.62% -10.11% -23.36% -20.44% -23.36% -24.52%

For the past year Fortinet Inc. had bullish trend while NIC Inc. had bearish trend.

Summary

Fortinet Inc. beats NIC Inc. on 12 of the 15 factors.

Fortinet, Inc. provides cybersecurity solutions for enterprises, service providers, and government organizations worldwide. The company offers FortiGate physical 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 wide area network acceleration; FortiManager product family to provide a central management solution for FortiGate products comprising software updates, configuration, policy settings, and security updates; and the FortiAnalyzer product family, which offers a single point of network log data collection. It also provides FortiAP secure wireless access points; FortiWeb, a Web application firewall; FortiMail email security; FortiDB database security appliances; FortiClient, an endpoint security software; and FortiSwitch secure switch connectivity products. In addition, the company provides FortiSandbox advanced threat protection solutions; FortiDDos and FortiDB database security appliances; and FortiSIEM family of products to provide a cloud-ready security information and event management (SIEM) solution for enterprises and service providers. Further, it offers security subscription, technical support, training, and professional services. The company was founded in 2000 and is headquartered in Sunnyvale, California.

NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. The companyÂ’s Outsourced Portals business enters into long-term contracts with state and local governments to design, build, and operate Internet-based, enterprise-wide portals on their behalf. These portals consist of Websites and applications that enable businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Its portal service offerings include motor vehicle driver history record retrieval; vehicle title, lien, and registration; motor vehicle inspections; temporary vehicle tags; driverÂ’s license renewal; hunting and fishing licenses; health professional license services; professional license renewal; business registrations and renewals; secretary of state business searches; Uniform Commercial Code (UCC) searches and filings; limited criminal history searches; court services; vital records; income and property tax payments; and payment processing products and services. The companyÂ’s software & services business provides software development and payment processing services to state and local governments, as well as federal agencies. In addition, it develops and manages the pre-employment screening program for motor carriers using transaction-based business model. Further, the company offers consulting, application development, and portal management services to governments. NIC Inc. was founded in 1991 and is based in Olathe, Kansas.