PANW vs RTX: Which Is the Better Buy?
Side-by-side comparison of Palo Alto Networks, Inc. and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Palo Alto Networks, Inc. · Technology
$287.78
+2.9% upside to fair value
Grade B
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
PANW has more upside to fair value
(+2.9%).
RTX trades at a lower forward P/E
(34.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
PANW |
RTX |
| Current Price |
$287.78 |
$185.60 |
| Fair Value Estimate |
$296.19 |
$138.81 |
| Upside to Fair Value |
+2.9%
|
-25.2%
|
| Market Cap |
$196.1B |
$249.9B |
| Forward P/E |
248.9x
|
34.3x
|
| EV / EBITDA |
85.9x
|
18.3x
|
| Price / Sales |
18.5x
|
2.8x
|
| Price / FCF |
45.7x
|
29.9x
|
| Revenue Growth YoY |
+31.1%
|
+8.7%
|
| Gross Margin |
71.9%
|
20.2%
|
| Operating Margin |
9.6%
|
10.9%
|
| Return on Equity |
6.3%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.19%
|
3.34%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Palo Alto Networks is a leading cybersecurity company specializing in next-generation security platforms with a strong subscription and support revenue base comprising approximately 81% of total revenue. The company benefits from a wide and expanding competitive moat driven by its AI- and platform-driven cybersecurity solutions, led by a seasoned management team. Despite strong revenue growth of …
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
PANW |
RTX |
| Zone Low |
$222.14 |
$104.11 |
| Zone High |
$251.76 |
$117.99 |
| In Buy Zone? |
No
|
No
|