Fortinet Inc (FTNT)vsPalo Alto Networks Inc (PANW)
FTNT
Fortinet Inc
$178.74
+2.57%
TECHNOLOGY · Cap: $114.51B
PANW
Palo Alto Networks Inc
$374.57
+5.00%
TECHNOLOGY · Cap: $270.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 53% more annual revenue ($11.48B vs $7.53B). FTNT leads profitability with a 28.2% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.73. FTNT earns a higher WallStSmart Score of 73/100 (B).
FTNT
Strong Buy73
out of 100
Grade: B
PANW
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.4%
Fair Value
$275.55
Current Price
$178.74
$96.81 discount
Margin of Safety
+27.4%
Fair Value
$500.75
Current Price
$374.57
$126.18 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 137 in profit
Strong operational efficiency at 33.6%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Revenue surging 25.6% year-over-year
Earnings expanding 43.9% YoY
Mega-cap, among the largest globally
Revenue surging 34.4% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 84.7x book value
Expensive relative to growth rate
Trading at 11.1x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : FTNT
The strongest argument for FTNT centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 28.2% and operating margin at 33.6%. Revenue growth of 25.6% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.4% demonstrates continued momentum.
Bear Case : FTNT
The primary concerns for FTNT are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 56.1x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 295.2x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
FTNT profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.
FTNT carries more volatility with a beta of 1.06 — expect wider price swings.
PANW is growing revenue faster at 34.4% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
FTNT scores higher overall (73/100 vs 51/100), backed by strong 28.2% margins and 25.6% revenue growth. PANW offers better value entry with a 27.4% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Fortinet Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Fortinet (Nasdaq: FTNT) is an American multinational corporation headquartered in Sunnyvale, California. It develops and sells cybersecurity solutions, including but not limited to physical products such as firewalls, plus software and services such as anti-virus protection, intrusion prevention systems and endpoint security components.
Palo Alto Networks Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.
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