Fortinet Inc (FTNT)vsPalo Alto Networks Inc (PANW)
FTNT
Fortinet Inc
$118.84
-3.00%
TECHNOLOGY · Cap: $99.98B
PANW
Palo Alto Networks Inc
$313.84
-0.26%
TECHNOLOGY · Cap: $299.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 46% more annual revenue ($11.48B vs $7.88B). FTNT leads profitability with a 29.0% profit margin vs 2.7%. FTNT appears more attractively valued with a PEG of 1.50. FTNT earns a higher WallStSmart Score of 75/100 (B+).
FTNT
Strong Buy75
out of 100
Grade: B+
PANW
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+58.4%
Fair Value
$285.80
Current Price
$118.84
$166.96 discount
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$313.84
$184.84 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 137 in profit
Strong operational efficiency at 33.8%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Revenue surging 20.5% year-over-year
Mega-cap, among the largest globally
Revenue surging 34.5% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Areas to Watch
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 38.8x book value
Expensive relative to growth rate
Trading at 9.3x 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 29.0% and operating margin at 33.8%. Revenue growth of 20.5% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.5% demonstrates continued momentum.
Bear Case : FTNT
The primary concerns for FTNT are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 44.5x 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 914.7x 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 1.04 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
FTNT scores higher overall (75/100 vs 51/100), backed by strong 29.0% margins and 20.5% revenue growth. PANW offers better value entry with a 26.6% 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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