LIVE
FTNT
Fortinet, Inc. · Technology
$144.73
+13.39% this month
VERSUS
⟷
COMPARE
PANW
Palo Alto Networks, Inc. · Technology
$287.78
+19.84% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
FTNT
2
PANW
3
Comparison scoreboard
PANW LEADS 3/5AI Score
FTNT 60.6
PANW ✓61.5
1Y Return
FTNT +40.68%
PANW ✓+42.43%
Fwd P/E
FTNT ✓42.70
PANW 67.93
Target Up.
FTNT -23.11%
PANW ✓+10.98%
Op. Margin
FTNT ✓31.28%
PANW -2.46%
Metrics last refreshed: 6/20/2026
Quick take
FTNT vs PANW Stock Comparison: AI Score, Valuation, Performance and Upside
Fortinet and Palo Alto Networks are the two largest pure-play enterprise security companies, competing in network firewall, SASE, and cloud security. Fortinet's FortiASIC hardware advantage makes it the most profitable enterprise security company with a large installed base in mid-market and enterprise. Palo Alto's AI platform strategy and platformization deal structure are gaining enterprise mindshare at the high end, commanding a premium growth multiple.
FTNT vs PANW is a comparison between the profitable, hardware-advantage network security incumbent (Fortinet) and the premium AI security platform provider pursuing platform consolidation (Palo Alto) — Fortinet offers better near-term profitability and recovery value from product digestion; Palo Alto offers higher growth rates and AI security platform leadership at a premium valuation.
Live analysis · updated 6/20/2026
PANW holds the edge across 3 of 5 key metrics in this comparison. PANW has delivered stronger 1-year price return (+42.43% vs +40.68%), though FTNT trades at the lower forward P/E (42.70x vs 67.93x). On fundamentals, PANW is growing revenue faster (31.10%), while FTNT maintains the higher operating margin (31.28%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for PANW (+10.98%) than for FTNT (-23.11%).
Normalized 1Y performance
FTNT
PANW
Recent returns
FTNT
PANW
Analyst price targets & sentiment
FTNT · 38 analysts
STRONG BUYHOLDSTRONG SELL
Hold (2.5/5.0)
Price target range
analyst low$83.00
analyst high$135.00
analyst mean$112.49
current price$144.73
-23.1% upside to analyst mean
PANW · 49 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.9/5.0)
Price target range
analyst low$123.00
analyst mean$310.32
current price$287.78
+11.0% upside to analyst mean
Who should consider this stock?
FTNT may suit investors who:
- →prefer the most profitable large-cap security company with FortiASIC hardware performance advantages in firewall deployments
- →value recovery upside from the 2023–2024 hardware inventory digestion that significantly depressed product revenue
- →want exposure to OT (operational technology) security and mid-market network security without paying Palo Alto's premium
- →are comfortable with hardware-dependent revenue model that creates inventory digestion cycles distinct from pure software vendors
PANW may suit investors who:
- →prefer the AI security platform leader with platformization strategy consolidating enterprise security budgets
- →value Prisma Cloud CNAPP and Cortex XSIAM as differentiated AI security products gaining enterprise mindshare
- →want the highest-growth large-cap security platform with ARR growth driving long-term earnings compounding
- →are comfortable with premium valuation and near-term earnings impact from platformization deal structures
Performance & AI score
| Metric | FTNT | PANW |
|---|---|---|
| AI score | 60.6 | 61.5 |
| AI rank | #151 | #137 |
| Latest close | $144.73 | $287.78 |
| 1M return | +13.39% | +19.84% |
| 6M return | +82.33% | +56.88% |
| 1Y return | +40.68% | +42.43% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | FTNT | PANW |
|---|---|---|
| 1Y ago | $14.36K (+43.6%) started 2025-06-18 | $14.4K (+44.0%) started 2025-06-18 |
| 5Y ago | $30.42K (+204.2%) started 2021-06-21 | $46.55K (+365.5%) started 2021-06-21 |
| 10Y ago | $215.76K (+2057.6%) started 2016-06-20 | $134.73K (+1247.3%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | FTNT | PANW |
|---|---|---|
| Market cap | $107.19B | $227.89B |
| Trailing P/E | 56.93 | 243.15 |
| Forward P/E | 42.70 | 67.93 |
| Price/Sales | 13.08 | 15.00 |
| EV/Revenue | 14.69 | 21.39 |
| Analyst target | $112.49 | $310.32 |
| Target upside | -23.11% | +10.98% |
Growth, profitability & risk
| Metric | FTNT | PANW |
|---|---|---|
| Revenue growth | 20.10% | 31.10% |
| Earnings growth | 28.60% | 60.50% |
| EPS growth | +28.60% | +60.50% |
| FCF margin | +25.50% | +33.75% |
| Operating margin | 31.28% | -2.46% |
| Profit margin | 27.49% | 7.95% |
| ROIC proxy | 132.39% | 4.83% |
| Return on equity | 132.39% | 4.83% |
| Dividend yield | N/A | N/A |
| Beta | 1.11 | 0.94 |
| Debt/equity | 57.31 | 7.70 |
| Current ratio | 1.15 | 0.86 |
| Quick ratio | 1.03 | 0.73 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
FTNT max drawdown30.90%
PANW max drawdown36.01%
FTNT max wkly drop24.62%
PANW max wkly drop16.38%
5Y risk snapshot
FTNT max drawdown38.32%
PANW max drawdown36.01%
FTNT max wkly drop26.08%
PANW max wkly drop28.86%
10Y risk snapshot
FTNT max drawdown38.32%
PANW max drawdown47.98%
FTNT max wkly drop27.11%
PANW max wkly drop28.86%
Performance metrics by period
| Period | Metric | FTNT | PANW |
|---|---|---|---|
| 1Y | Growth | +43.55% | +44.05% |
| CAGR | +43.63% | +44.12% | |
| Sharpe ratio | 0.93 | 1.02 | |
| Max drawdown | 30.90% | 36.01% | |
| Max daily drop | 22.03% | 7.42% | |
| Max wkly drop | 24.62% | 16.38% | |
| 5Y | Growth | +204.16% | +365.49% |
| CAGR | +24.96% | +36.08% | |
| Sharpe ratio | 0.63 | 0.84 | |
| Max drawdown | 38.32% | 36.01% | |
| Max daily drop | 25.07% | 28.44% | |
| Max wkly drop | 26.08% | 28.86% | |
| 10Y | Growth | +2057.57% | +1247.28% |
| CAGR | +35.98% | +29.72% | |
| Sharpe ratio | 0.85 | 0.76 | |
| Max drawdown | 38.32% | 47.98% | |
| Max daily drop | 25.07% | 28.44% | |
| Max wkly drop | 27.11% | 28.86% |
Business comparison
| Category | FTNT | PANW |
|---|---|---|
| Company | Fortinet, Inc. | Palo Alto Networks, Inc. |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Software - Infrastructure |
| Core business | Fortinet is the world's largest network security company by unit shipments, providing firewalls (FortiGate), secure SD-WAN, VPN, and endpoint security for enterprise and mid-market customers. Its FortiASIC custom silicon provides performance advantages in high-throughput firewall deployments. Fortinet competes across enterprise firewall, SASE (secure access service edge), operational technology security, and SMB security. The company is significantly more profitable than pure-play security software vendors due to its hardware plus subscription model. | Palo Alto Networks is the leading AI-powered cybersecurity platform company, covering network security (next-gen firewall), cloud security (Prisma Cloud CNAPP), and security operations (Cortex XDR, XSIAM). Its 'platformization' strategy — offering bundled deals that consolidate multiple security vendors — has accelerated net new ARR growth from existing customers. PANW trades at a premium for its AI platform investment thesis and its annual recurring revenue growth trajectory. |
| Investor focus | Investors track product revenue recovery from a severe inventory digestion cycle (2023–2024 as customers worked through hardware ordered during shortages), service/subscription revenue growth, SASE (unified SASE via FortiSASE) market penetration, and operating margins that historically exceed 25%. | Investors focus on next-generation security ARR (the combined ARR from Prisma Cloud and Cortex that represents the pure subscription portion), platformization deal count and average contract value, free cash flow margin, and the AI security platform thesis' competitive differentiation. |
FTNT strengths
- →Custom FortiASIC silicon provides 3–10x throughput advantage over software-based competitors in high-performance firewall deployments
- →Most profitable large-cap security company with 25%+ operating margins from a hardware + subscription blend
- →Largest network security installed base globally creates natural upsell opportunities for subscription services on existing hardware
PANW strengths
- →Platformization consolidation strategy reduces the number of security vendors enterprises need, creating large cross-sell within existing accounts
- →XSIAM (AI-driven SIEM alternative) is one of the most differentiated AI security products commercially deployed at enterprise scale
- →Prisma Cloud CNAPP is a leading cloud-native application protection platform as enterprises shift workloads to cloud
Risks to watch — FTNT
- →Severe product revenue shortfall in 2023–2024 from hardware inventory digestion after overbooking during shortage period
- →Palo Alto Networks' AI platform strategy is winning enterprise mindshare at the high end of the market
- →SASE market growth benefits Palo Alto and Zscaler more than Fortinet in the pure-cloud segment
Risks to watch — PANW
- →Platformization deals include significant concessions (free products, delayed billing) that temporarily reduce reported revenue and billings
- →Premium valuation (often 80–100x earnings) requires consistent platform ARR growth acceleration to justify
- →Fortinet's hardware performance advantage remains significant in on-premises firewall deployments where throughput is critical
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