PANW vs FTNT Stock Comparison: AI Score, Valuation, Performance and Upside
PANW pursues a broad, platform-consolidation strategy across network, cloud, and security operations with premium growth and valuation, while FTNT leverages a proprietary hardware advantage in network security with a more efficient, profitable growth model. Both are leading cybersecurity vendors but differ in product strategy and revenue mix.
PANW vs FTNT contrasts a broad cybersecurity platform consolidator pursuing aggressive multi-product deals against a more hardware-efficient, profitability-focused network security specialist.
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%).
- →Want exposure to the broadest cybersecurity platform consolidation strategy
- →Believe platformization will drive durable, large enterprise contract growth
- →Are comfortable paying a premium valuation for growth
- →Want exposure to a proprietary hardware-advantaged network security leader
- →Value strong, consistent profitability and margins
- →Prefer a relatively more reasonably valued cybersecurity stock
| Metric | PANW | FTNT |
|---|---|---|
| AI score | 61.5 | 60.6 |
| AI rank | #137 | #151 |
| Latest close | $287.78 | $144.73 |
| 1M return | +19.84% | +13.39% |
| 6M return | +56.88% | +82.33% |
| 1Y return | +42.43% | +40.68% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | PANW | FTNT |
|---|---|---|
| 1Y ago | $14.4K (+44.0%) started 2025-06-18 | $14.36K (+43.6%) started 2025-06-18 |
| 5Y ago | $46.55K (+365.5%) started 2021-06-21 | $30.42K (+204.2%) started 2021-06-21 |
| 10Y ago | $134.73K (+1247.3%) started 2016-06-20 | $215.76K (+2057.6%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | PANW | FTNT |
|---|---|---|
| Market cap | $227.89B | $107.19B |
| Trailing P/E | 243.15 | 56.93 |
| Forward P/E | 67.93 | 42.70 |
| Price/Sales | 15.00 | 13.08 |
| EV/Revenue | 21.39 | 14.69 |
| Analyst target | $310.32 | $112.49 |
| Target upside | +10.98% | -23.11% |
| Metric | PANW | FTNT |
|---|---|---|
| Revenue growth | 31.10% | 20.10% |
| Earnings growth | 60.50% | 28.60% |
| EPS growth | +60.50% | +28.60% |
| FCF margin | +33.75% | +25.50% |
| Operating margin | -2.46% | 31.28% |
| Profit margin | 7.95% | 27.49% |
| ROIC proxy | 4.83% | 132.39% |
| Return on equity | 4.83% | 132.39% |
| Dividend yield | N/A | N/A |
| Beta | 0.94 | 1.11 |
| Debt/equity | 7.70 | 57.31 |
| Current ratio | 0.86 | 1.15 |
| Quick ratio | 0.73 | 1.03 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | PANW | FTNT |
|---|---|---|---|
| 1Y | Growth | +44.05% | +43.55% |
| CAGR | +44.12% | +43.63% | |
| Sharpe ratio | 1.02 | 0.93 | |
| Max drawdown | 36.01% | 30.90% | |
| Max daily drop | 7.42% | 22.03% | |
| Max wkly drop | 16.38% | 24.62% | |
| 5Y | Growth | +365.49% | +204.16% |
| CAGR | +36.08% | +24.96% | |
| Sharpe ratio | 0.84 | 0.63 | |
| Max drawdown | 36.01% | 38.32% | |
| Max daily drop | 28.44% | 25.07% | |
| Max wkly drop | 28.86% | 26.08% | |
| 10Y | Growth | +1247.28% | +2057.57% |
| CAGR | +29.72% | +35.98% | |
| Sharpe ratio | 0.76 | 0.85 | |
| Max drawdown | 47.98% | 38.32% | |
| Max daily drop | 28.44% | 25.07% | |
| Max wkly drop | 28.86% | 27.11% |
| Category | PANW | FTNT |
|---|---|---|
| Company | Palo Alto Networks, Inc. | Fortinet, Inc. |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Software - Infrastructure |
| Core business | Palo Alto Networks provides a broad cybersecurity platform spanning network security, cloud security (Prisma Cloud), and security operations (Cortex), pursuing a platformization strategy to consolidate customer security spend. | Fortinet provides network security through its proprietary security-focused silicon (ASICs) in firewalls, along with a broadening secure networking and security operations portfolio. |
| Investor focus | Investors track Palo Alto's platformization strategy success in consolidating multiple security products under single large customer contracts, next-generation security ARR growth, and free cash flow margins. | Investors track Fortinet's hardware refresh cycle (firewall replacement demand), unified SASE platform adoption, and billings growth as a leading indicator of future revenue. |
- →Broadest cybersecurity platform spanning network, cloud, and security operations
- →Platformization strategy drives larger, stickier multi-product customer deals
- →Strong free cash flow generation supports continued M&A and platform expansion
- →Proprietary ASIC-based hardware provides a performance and cost advantage in firewalls
- →Strong installed base creates recurring hardware refresh and subscription revenue
- →Efficient, profitable growth model with strong margins
- →Platformization strategy can create near-term revenue recognition headwinds as deals bundle in product migrations
- →Premium valuation reflects high growth and margin expectations
- →Intense competition across every security category it competes in
- →More hardware-dependent revenue model than software-centric peers like Palo Alto
- →Recent billings growth has been more volatile amid a slower firewall refresh cycle
- →Faces intensifying competition in the SASE and cloud security markets from Palo Alto and others
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