Fortinet vs Palo Alto Networks: a Stock Duel
2 great companies in the cybersecurity industry
The cybersecurity market is poised for significant growth, with a projected CAGR of 13% through 2030. I’ve explored this in detail in my article dedicated to the cybersecurity industry. Among the various companies in this space, few possess the leadership potential of Fortinet and Palo Alto Networks.
In this head-to-head comparison, Fortinet edges out as the winner, though the competition is close. Palo Alto Networks shows higher growth potential but loses ground due to its aggressive stock-based compensation (SBC) policy, which nearly consumes its entire free cash flow. I hae delved into this issue further in my article on to Palo Alto.
For investors prioritizing growth and who are comfortable with substantial SBC expenses, Palo Alto Networks remains a strong choice, boasting a larger size and greater market share than Fortinet. However, if you prefer higher net profit margins, prudent management, and share buybacks, Fortinet may be the better option.
If you like stock duels, you can find here the previous ones: