Fortinet Inc (FTNT)vsPalo Alto Networks Inc (PANW)
FTNT
Fortinet Inc
$159.64
-0.29%
TECHNOLOGY · Cap: $123.48B
PANW
Palo Alto Networks Inc
$363.86
+1.22%
TECHNOLOGY · Cap: $298.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 41% more annual revenue ($10.61B vs $7.53B). FTNT leads profitability with a 28.2% profit margin vs 8.0%. FTNT appears more attractively valued with a PEG of 2.24. FTNT earns a higher WallStSmart Score of 71/100 (B).
FTNT
Strong Buy71
out of 100
Grade: B
PANW
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.9%
Fair Value
$277.92
Current Price
$159.64
$118.28 discount
Margin of Safety
+22.4%
Fair Value
$467.52
Current Price
$363.86
$103.66 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 197 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 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 75.7x book value
Trading at 10.7x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
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 31.1% demonstrates continued momentum.
Bear Case : FTNT
The primary concerns for FTNT are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 57.8x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 318.6x 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 1.06 — 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 (71/100 vs 47/100), backed by strong 28.2% margins and 25.6% revenue growth. PANW offers better value entry with a 22.4% 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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