Fortinet, Inc. (FTNT) vs Palantir Technologies Inc. (PLTR)

Fortinet, Inc. and Palantir Technologies Inc. are both Software Infrastructure companies. Palantir Technologies Inc. is the larger, with a market value of $461.6B against $130.0B — 3.6× the size. Fortinet, Inc. trades at the lower P/E: 60.7× against 151×. Palantir Technologies Inc. grew revenue faster over the last twelve months: 78.9% against 18.8%. Palantir Technologies Inc. has the higher net margin (49.0% vs 28.2%) and the higher return on invested capital (346.1% vs 0.00%). Across the 22 metrics below, Palantir Technologies Inc. leads on 13 and Fortinet, Inc. on 9.

Valuation

Metric FTNT PLTR Software Infrastructure median
P/E 60.65 150.53 28.02
P/S 16.89 73.94 3.07
P/B 81.98 46.05 3.36
Price to free cash flow 40.80 135.54 17.12
EV/EBITDA 42.14 167.48 14.91
EV/Sales 16.49 72.44 3.03
Earnings yield 1.65% 0.66% 0.13%
Free cash flow yield 2.45% 0.74% 1.15%

Profitability

Metric FTNT PLTR Software Infrastructure median
Gross margin 80.20% 84.80% 61.23%
Operating margin 32.44% 42.80% 0.00%
Net margin 28.17% 49.00% 0.00%
Free cash flow margin 41.41% 54.55% 1.67%
Return on equity 117.44% 37.92% 0.59%
Return on assets 19.73% 31.68% 0.00%
Return on invested capital 0.00% 346.09% 0.00%

Growth

Metric FTNT PLTR Software Infrastructure median
Revenue growth (TTM) 18.77% 78.92% 13.41%
EPS growth (last fiscal year) 7.08% 231.58% —
Revenue growth, 5-year CAGR 21.25% 32.58% 15.81%
Net income growth, 5-year CAGR 30.56% 0.00% 0.00%

Health

Metric FTNT PLTR Software Infrastructure median
Debt to equity 0.32 0.00 0.06
Current ratio 1.28 7.23 1.55
Net debt to EBITDA (1.02) (4.98) 0.08

Dividend

Metric FTNT PLTR Software Infrastructure median
Dividend yield — — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric FTNT PLTR Software Infrastructure median
Market cap 130.01b 461.58b 835.96m

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