The shares of Iron Mountain Incorporated (NYSE:IRM) and Fortinet, Inc. (NASDAQ:FTNT) were among the active stocks of the last trading sessions. Iron Mountain Incorporated (NYSE:IRM) soared to 0.19% closing at the price of $31.8 whereas the shares of Fortinet, Inc. (NASDAQ:FTNT) soared 0.06% with the increase of 0.05 points closing at the price of $81.71. Iron Mountain Incorporated has currently decrease -4.62% in its stock over the period of 6-months while its rival Fortinet, Inc. added 42.97% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Iron Mountain Incorporated (NYSE:IRM) is 5.7% while the ROI of Fortinet, Inc. (NASDAQ:FTNT) is 13.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, IRM’s EBITDA Margin is 12.41 whereas FTNT’s is 57.41.
Both the profitability ratios suggest that Fortinet, Inc. (NASDAQ:FTNT) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Iron Mountain Incorporated (NYSE:IRM) reported $0.3/share EPS for the previous quarter where analysts were predicting an EPS to be $0.25/share Thus beating the analyst Estimates with a Surprise Factor of 20 Percent. While, Fortinet, Inc. (NASDAQ:FTNT) reported EPS of $0.41/share in the last quarter. The analysts projected EPS of $0.36/share depicting a Surprise of 13.9 Percent.
Taking a look at Earnings per Share, Iron Mountain Incorporated tends to be beating the analyst estimates more than Fortinet, Inc.. so IRM is more profitable than FTNT.
Technical Analysis of Iron Mountain Incorporated & Fortinet, Inc.
Moving average convergence divergence (MACD) shows that Iron Mountain Incorporated (NYSE:IRM) is on a PRICE RELATIVITY trend While Fortinet, Inc. (NASDAQ:FTNT) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Iron Mountain Incorporated was in BEARISH territory and Fortinet, Inc. was in BEARISH territory.
IRM’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While FTNT’s candle is BULLISH with HIGH.
EPS Growth Rate: IRM’s -0.97% versus FTNT’s 26%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Iron Mountain Incorporated (NYSE:IRM) is predicted at -0.97% while Fortinet, Inc. (NASDAQ:FTNT) stands at 26%. These numbers suggest that FTNT is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of IRM stands at 1 while FTNT is at 1.7 whereas the debt ratio of the prior is 3.98 while the debt ratio of the later is 0.
The values of the both ratios suggest that one is more liquid and other investment is more risk free.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.4 for IRM and 2.6 for FTNT which means IRM has Hold rating whereas FTNT has Hold rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for IRM is $39.11 which is 18.69% of its current price while FTNT has price target of 76.52 which is -6.78% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
IRM currently has price to earning P/E ratio of 48.4 whereas FTNT has 93.49 while the forward P/E ratio for the prior stands at 25.81 and for the later it depicts the value of 42.34.
The price to Book P/B for IRM is 4.42, Price to Sale is at 2.23 and for FTNT these ratios stand at 17.65 and 8.17.