FTNT vs. ZM: Fortinet vs. Zoom Communications Stock Comparison
How do Fortinet (FTNT) and Zoom Communications (ZM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Fortinet (FTNT) and Zoom Communications (ZM) both belong to the Software industry, though FTNT is classified under Systems Software while ZM falls under Application Software.
| Profile Item | FTNT | ZM |
|---|---|---|
| Name | Fortinet, Inc. | Zoom Communications, Inc. Class A Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Systems Software | Application Software |
| Market Capitalization | 87.31 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | November 18, 2009 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | FTNT | ZM |
|---|---|---|
| Total Return (1Y) | 49.91% | 12.58% |
| Total Return (3Y, Annualized) | 35.15% | 14.89% |
| Total Return (5Y, Annualized) | 11.92% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | FTNT | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 49.03% | 45.03% |
| Beta (5Y) | 1.07 | 0.99 |
| Max Drawdown (5Y) | -38.98% | -79.08% |
| Avg. Volume (3M) | 4.68M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | FTNT | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | 0.93 | 0.18 |
| Sortino Ratio (1Y) | 1.37 | 0.28 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Fortinet (FTNT) at 153.08% is the standout with ROE above its industry range; Zoom Communications (ZM) at 32.14% also sits in the top quartile.
FTNT
Software & Services industry group
153.08%
- FTNT
- 153.08%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Zoom Communications (ZM) at 65.19% keeps the most of each sales dollar — above its industry’s net margin range — and Fortinet (FTNT) at 28.96% also retains a top-quartile share.
FTNT
Software & Services industry group
28.96%
- Max
- 41.17%
- FTNT
- 28.96%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Both Fortinet (FTNT) at 33.82% and Zoom Communications (ZM) at 24.61% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
FTNT
Software & Services industry group
33.82%
- Max
- 46.89%
- FTNT
- 33.82%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | FTNT | ZM |
|---|---|---|
| ROE (TTM) | 153.08% | 32.14% |
| ROA (TTM) | 15.22% | 6.11% |
| Net Margin (TTM) | 28.96% | 65.19% |
| Operating Margin (TTM) | 33.82% | 24.61% |
| Gross Margin (TTM) | 79.75% | 77.66% |
Growth
Revenue Growth
Fortinet (FTNT) at 14.17% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Fortinet (FTNT) at 7.08% is closer to the peer norm — faster per-share earnings growth for ZM.
Growth Metrics
| Metric | FTNT | ZM |
|---|---|---|
| Revenue Growth (YoY) | 14.17% | 4.36% |
| Revenue Growth (3Y CAGR) | 15.46% | 3.49% |
| EPS Growth (YoY) | 7.08% | 92.52% |
| EPS Growth (3Y CAGR) | 31.68% | 162.93% |
Financial Strength
Current Ratio (MRQ)
Fortinet (FTNT) at 1.40 keeps current ratio within its industry’s typical mid-range, while Zoom Communications (ZM) at 3.83 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
FTNT
Software & Services industry group
1.40
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- FTNT
- 1.40
- Q1
- 1.01
- Min
- 0.03
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Fortinet (FTNT) at 0.25 runs a more typical debt-to-equity mix.
FTNT
Software & Services industry group
0.25
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- FTNT
- 0.25
- Q1
- 0.07
- Min
- 0.00
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | FTNT | ZM |
|---|---|---|
| Current Ratio (MRQ) | 1.40 | 3.83 |
| Debt / Equity (MRQ) | 0.25 | 0.01 |
| Net Debt / EBITDA | -1.54 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Fortinet (FTNT) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
FTNT
Software & Services industry group
0.00%
- FTNT
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Fortinet (FTNT) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
FTNT
Software & Services industry group
0.00%
- FTNT
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | FTNT | ZM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while Fortinet (FTNT) at 38.84 is closer to its industry’s usual earnings multiple — a discount for ZM, though growth and earnings durability still matter.
FTNT
Software & Services industry group
38.84
- Max
- 112.94
- Q3
- 60.32
- FTNT
- 38.84
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
Zoom Communications (ZM) at 5.25 is priced about in line with its industry on P/S ratio, while Fortinet (FTNT) at 11.08 sits in the pricier quartile — FTNT costs more per dollar of sales.
FTNT
Software & Services industry group
11.08
- Max
- 17.91
- FTNT
- 11.08
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Zoom Communications (ZM) at 2.32 sits near its industry’s typical P/B ratio, while Fortinet (FTNT) at 38.85 prices above its benchmark range — FTNT looks rich relative to book.
FTNT
Software & Services industry group
38.85
- FTNT
- 38.85
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | FTNT | ZM |
|---|---|---|
| P/E Ratio (TTM) | 38.84 | 8.34 |
| P/S Ratio (TTM) | 11.08 | 5.25 |
| P/B Ratio (MRQ) | 38.85 | 2.32 |
| Free Cash Flow Yield (TTM) | 2.85% | 7.53% |