Fortinet Inc (FTNT)vsPalo Alto Networks Inc (PANW)
FTNT
Fortinet Inc
$114.07
+5.65%
TECHNOLOGY · Cap: $79.05B
PANW
Palo Alto Networks Inc
$207.88
+5.78%
TECHNOLOGY · Cap: $159.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 46% more annual revenue ($9.89B vs $6.80B). FTNT leads profitability with a 27.3% profit margin vs 13.0%. FTNT appears more attractively valued with a PEG of 2.17. FTNT earns a higher WallStSmart Score of 59/100 (C).
FTNT
Buy59
out of 100
Grade: C
PANW
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+66.5%
Fair Value
$262.23
Current Price
$114.07
$148.16 discount
Margin of Safety
+56.7%
Fair Value
$454.04
Current Price
$207.88
$246.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 136 in profit
Strong operational efficiency at 32.8%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Generating 1.0B in free cash flow
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Grey zone — moderate risk
Premium valuation, high expectations priced in
Trading at 68.3x book value
Trading at 15.6x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 27.3% and operating margin at 32.8%. Revenue growth of 14.8% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.
Bear Case : FTNT
The primary concerns for FTNT are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 44.6x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 109.2x leaves little room for execution misses.
Key Dynamics to Monitor
FTNT profiles as a mature stock while PANW is a value play — different risk/reward profiles.
FTNT carries more volatility with a beta of 0.92 — expect wider price swings.
PANW is growing revenue faster at 14.9% — sustainability is the question.
FTNT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
FTNT scores higher overall (59/100 vs 56/100), backed by strong 27.3% margins and 14.8% revenue growth. PANW offers better value entry with a 56.7% margin of safety. Both earn "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.
Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?