Better Buy: Fortinet or Palo Alto Networks? | FTNT Stock vs. PANW Stock

Parkev examines the massive surge in cybersecurity demand caused by 'agentic AI,' which has led to stocks like Palo Alto Networks and Fortinet doubling in price during 2026. Parkev argues that while the underlying business fundamentals remain strong with accelerating revenue growth, the market has priced in too much optimism, making current valuations risky for new investors. Parkev emphasizes that both companies have seen their revenues increase nearly ten-fold over the last decade, yet their internal efficiencies and profit margins differ significantly.

Parkev provides a comparative analysis of key metrics, noting that while Palo Alto Networks leads in total revenue and revenue per employee, Fortinet exhibits significantly better profitability and capital efficiency. Parkev states that Fortinet's operating margins and return on invested capital are far superior to those of Palo Alto Networks, which has seen its margins decline recently. Parkev concludes that although he has been bullish on the cybersecurity sector for years, he would not buy either stock at these levels and suggests that a prudent move is to wait for a significant price correction.