Fortinet Inc (FTNT)vsPalo Alto Networks Inc (PANW)
FTNT
Fortinet Inc
$148.00
-1.84%
TECHNOLOGY · Cap: $109.52B
PANW
Palo Alto Networks Inc
$272.05
+1.58%
TECHNOLOGY · Cap: $231.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 49% more annual revenue ($10.61B vs $7.11B). FTNT leads profitability with a 27.5% profit margin vs 8.0%. FTNT appears more attractively valued with a PEG of 3.37. FTNT earns a higher WallStSmart Score of 67/100 (B-).
FTNT
Strong Buy67
out of 100
Grade: B-
PANW
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+45.3%
Fair Value
$264.55
Current Price
$148.00
$116.55 discount
Margin of Safety
+38.8%
Fair Value
$470.35
Current Price
$272.05
$198.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 197 in profit
Strong operational efficiency at 31.3%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Revenue surging 20.1% year-over-year
Earnings expanding 28.6% YoY
Mega-cap, among the largest globally
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 109.6x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
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 27.5% and operating margin at 31.3%. Revenue growth of 20.1% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bear Case : FTNT
The primary concerns for FTNT are Altman Z-Score, PEG Ratio, P/E Ratio. A P/E of 57.7x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 247.4x leaves little room for execution misses.
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 1.11 — expect wider price swings.
PANW is growing revenue faster at 31.1% — sustainability is the question.
FTNT generates stronger free cash flow (1.0B), providing more financial flexibility.
Bottom Line
FTNT scores higher overall (67/100 vs 47/100), backed by strong 27.5% margins and 20.1% revenue growth. PANW offers better value entry with a 38.8% margin of safety. Both earn "Strong Buy" and "Hold" 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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