Palo Alto Networks vs Fortinet Which Is a Better Investment?

Palo Alto Networks and Fortinet are two major players in the cybersecurity industry, offering a range of products and services to help businesses protect their digital assets from cyber threats. Both companies have shown significant growth in recent years as the demand for cybersecurity solutions continues to rise. Investors interested in the cybersecurity sector may be considering whether to invest in Palo Alto Networks or Fortinet stocks. In this comparison, we will explore the financial performance, market positioning, and growth prospects of these two companies to help investors make an informed decision.

Palo Alto Networks

Fortinet

Stock Price
Day Low$393.70
Day High$400.69
Year Low$234.15
Year High$400.69
Yearly Change71.13%
Revenue
Revenue Per Share$24.75
5 Year Revenue Growth1.75%
10 Year Revenue Growth10.83%
Profit
Gross Profit Margin0.74%
Operating Profit Margin0.11%
Net Profit Margin0.32%
Stock Price
Day Low$92.30
Day High$97.35
Year Low$49.70
Year High$97.35
Yearly Change95.88%
Revenue
Revenue Per Share$7.48
5 Year Revenue Growth2.20%
10 Year Revenue Growth7.99%
Profit
Gross Profit Margin0.80%
Operating Profit Margin0.28%
Net Profit Margin0.27%

Palo Alto Networks

Fortinet

Financial Ratios
P/E ratio50.10
PEG ratio5.16
P/B ratio24.98
ROE63.78%
Payout ratio0.00%
Current ratio0.84
Quick ratio0.84
Cash ratio0.20
Dividend
Dividend Yield-%
5 Year Dividend Yield0.00%
10 Year Dividend Yield0.00%
Palo Alto Networks Dividend History
Financial Ratios
P/E ratio48.51
PEG ratio-3.32
P/B ratio81.73
ROE1027.81%
Payout ratio0.00%
Current ratio1.34
Quick ratio1.25
Cash ratio0.64
Dividend
Dividend Yield-%
5 Year Dividend Yield0.00%
10 Year Dividend Yield0.00%
Fortinet Dividend History

Palo Alto Networks or Fortinet?

When comparing Palo Alto Networks and Fortinet, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Palo Alto Networks and Fortinet.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Palo Alto Networks has a dividend yield of -%, while Fortinet has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Palo Alto Networks reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Fortinet reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Palo Alto Networks P/E ratio at 50.10 and Fortinet's P/E ratio at 48.51. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Palo Alto Networks P/B ratio is 24.98 while Fortinet's P/B ratio is 81.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Palo Alto Networks has seen a 5-year revenue growth of 1.75%, while Fortinet's is 2.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Palo Alto Networks's ROE at 63.78% and Fortinet's ROE at 1027.81%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $393.70 for Palo Alto Networks and $92.30 for Fortinet. Over the past year, Palo Alto Networks's prices ranged from $234.15 to $400.69, with a yearly change of 71.13%. Fortinet's prices fluctuated between $49.70 and $97.35, with a yearly change of 95.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.

Comparision