Leaders & Laggards

Fortinet vs Akamai

Presented By: Bryan Thach & Blake Wong

Software - Infrastructure

3 - Month Performance

Fortinet, Inc.

• Provider of cybersecurity solutions to businesses worldwide
• Segments include…
• Network Security
• Infrastructure Security
• Cloud Security
• Endpoint Protection
• Operational Technology
• Currently providing its products and services in over 70 countries

Leader: Fortinet, Inc

Why Are They Doing Well?

• Increase of ransomware attacks
• Increased 1070% in Africa YoY from 2020
• 67% of business worldwide targeted from June to July
• AT&T and Fortinet Partnership
• Fortinet to Train Approximately 1 Mil People
• Named Global Leader in the 2021 Gartner Magic Edge Quadrant for WAN Edge Infrastructure
• Only vendor capable of providing Work-From-Anywhere security

Akamai Technologies Inc.

• Provides cloud and enterprise security solutions to businesses worldwide
• Protects the following from cybersecurity attacks
• Infrastructure
• Websites
• Applications (TikTok)
• Streaming (Fox, Comcast)
• Notable clients
• Adobe
• Office of Secretary Defense
• Hewlett Packard (HP)

Laggard: Akamai Technologies

Why Are They Not Doing Well?

9/30/21- Akamai Technologies acquires Guardicore in $600 million deal

• What is Guardicore?
• Ransomware and micro-segmentation company
• Limits application access to authorized users
• Allows security teams to monitor and visualize activity of users
• Why did this cause price to drop?
• Analysts believe that Akamai overpaid for the acquisition
• Projected revenue for 2022 is $30-35 million; Akamai paid ≈18 times projected revenue
• Price cuts into the company’s high margins in the short term
• Management projects operating margin to drop 2-3%

Fundamental Analysis

Valuation

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Profitability

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Liquidity/Leverage

Conclusion

Buy

Buy/Hold