Seek Returns logo

FTNT vs. HPQ: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at FTNT and HPQ, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolFTNTHPQ
Company NameFortinet, Inc.HP Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareTechnology Hardware, Storage & Peripherals
Market Capitalization66.25 billion USD25.26 billion USD
ExchangeNasdaqGSNYSE
Listing DateNovember 18, 2009January 2, 1962
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of FTNT and HPQ by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

FTNT vs. HPQ: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolFTNTHPQ
5-Day Price Return0.20%2.08%
13-Week Price Return-19.68%5.50%
26-Week Price Return-3.33%13.67%
52-Week Price Return11.59%-24.73%
Month-to-Date Return2.83%-0.73%
Year-to-Date Return-8.49%-17.16%
10-Day Avg. Volume4.45M11.40M
3-Month Avg. Volume6.31M9.00M
3-Month Volatility53.90%25.86%
Beta1.091.24

Profitability

Return on Equity (TTM)

FTNT

120.75%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

FTNT’s Return on Equity of 120.75% is exceptionally high, placing it well beyond the typical range for the Software industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

HPQ

16.85%

Technology Hardware, Storage & Peripherals Industry

Max
56.93%
Q3
27.52%
Median
9.18%
Q1
5.14%
Min
-1.04%

HPQ’s Return on Equity of 16.85% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

FTNT vs. HPQ: A comparison of their Return on Equity (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Net Profit Margin (TTM)

FTNT

30.60%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

A Net Profit Margin of 30.60% places FTNT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

HPQ

4.83%

Technology Hardware, Storage & Peripherals Industry

Max
16.15%
Q3
7.95%
Median
4.80%
Q1
2.20%
Min
-0.29%

HPQ’s Net Profit Margin of 4.83% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.

FTNT vs. HPQ: A comparison of their Net Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Operating Profit Margin (TTM)

FTNT

32.55%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

An Operating Profit Margin of 32.55% places FTNT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

HPQ

5.85%

Technology Hardware, Storage & Peripherals Industry

Max
20.70%
Q3
10.74%
Median
6.27%
Q1
4.07%
Min
1.97%

HPQ’s Operating Profit Margin of 5.85% is around the midpoint for the Technology Hardware, Storage & Peripherals industry, indicating that its efficiency in managing core business operations is typical for the sector.

FTNT vs. HPQ: A comparison of their Operating Profit Margin (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolFTNTHPQ
Return on Equity (TTM)120.75%16.85%
Return on Assets (TTM)19.56%6.71%
Net Profit Margin (TTM)30.60%4.83%
Operating Profit Margin (TTM)32.55%5.85%
Gross Profit Margin (TTM)81.42%20.89%

Financial Strength

Current Ratio (MRQ)

FTNT

1.33

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

FTNT’s Current Ratio of 1.33 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

HPQ

0.74

Technology Hardware, Storage & Peripherals Industry

Max
3.37
Q3
2.04
Median
1.41
Q1
0.98
Min
0.11

HPQ’s Current Ratio of 0.74 falls into the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

FTNT vs. HPQ: A comparison of their Current Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

FTNT

0.48

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

FTNT’s Debt-to-Equity Ratio of 0.48 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

HPQ

0.32

Technology Hardware, Storage & Peripherals Industry

Max
1.54
Q3
0.85
Median
0.32
Q1
0.11
Min
0.00

HPQ’s Debt-to-Equity Ratio of 0.32 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

FTNT vs. HPQ: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Interest Coverage Ratio (TTM)

FTNT

184.75

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

With an Interest Coverage Ratio of 184.75, FTNT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.

HPQ

8.25

Technology Hardware, Storage & Peripherals Industry

Max
143.63
Q3
76.01
Median
19.47
Q1
5.91
Min
-23.93

HPQ’s Interest Coverage Ratio of 8.25 is positioned comfortably within the norm for the Technology Hardware, Storage & Peripherals industry, indicating a standard and healthy capacity to cover its interest payments.

FTNT vs. HPQ: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolFTNTHPQ
Current Ratio (MRQ)1.330.74
Quick Ratio (MRQ)1.210.44
Debt-to-Equity Ratio (MRQ)0.480.32
Interest Coverage Ratio (TTM)184.758.25

Growth

Revenue Growth

FTNT vs. HPQ: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

FTNT vs. HPQ: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

FTNT

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

FTNT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

HPQ

4.29%

Technology Hardware, Storage & Peripherals Industry

Max
4.33%
Q3
3.29%
Median
1.76%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 4.29%, HPQ offers a more attractive income stream than most of its peers in the Technology Hardware, Storage & Peripherals industry, signaling a strong commitment to shareholder returns.

FTNT vs. HPQ: A comparison of their Dividend Yield (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend Payout Ratio (TTM)

FTNT

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

FTNT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

HPQ

40.95%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
77.17%
Median
40.90%
Q1
3.87%
Min
0.00%

HPQ’s Dividend Payout Ratio of 40.95% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

FTNT vs. HPQ: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolFTNTHPQ
Dividend Yield (TTM)0.00%4.29%
Dividend Payout Ratio (TTM)0.00%40.95%

Valuation

Price-to-Earnings Ratio (TTM)

FTNT

34.04

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

FTNT’s P/E Ratio of 34.04 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

HPQ

9.55

Technology Hardware, Storage & Peripherals Industry

Max
43.10
Q3
28.67
Median
19.23
Q1
15.53
Min
9.46

In the lower quartile for the Technology Hardware, Storage & Peripherals industry, HPQ’s P/E Ratio of 9.55 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

FTNT vs. HPQ: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Sales Ratio (TTM)

FTNT

10.42

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

FTNT’s P/S Ratio of 10.42 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

HPQ

0.46

Technology Hardware, Storage & Peripherals Industry

Max
5.63
Q3
3.18
Median
1.10
Q1
0.49
Min
0.04

In the lower quartile for the Technology Hardware, Storage & Peripherals industry, HPQ’s P/S Ratio of 0.46 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

FTNT vs. HPQ: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Book Ratio (MRQ)

FTNT

39.27

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

At 39.27, FTNT’s P/B Ratio is at an extreme premium to the Software industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

HPQ

0.90

Technology Hardware, Storage & Peripherals Industry

Max
13.94
Q3
6.87
Median
1.88
Q1
0.94
Min
0.32

HPQ’s P/B Ratio of 0.90 is in the lower quartile for the Technology Hardware, Storage & Peripherals industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

FTNT vs. HPQ: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolFTNTHPQ
Price-to-Earnings Ratio (TTM)34.049.55
Price-to-Sales Ratio (TTM)10.420.46
Price-to-Book Ratio (MRQ)39.270.90
Price-to-Free Cash Flow Ratio (TTM)32.488.44