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 2026-05-04.
Palo Alto Networks, Inc. · Technology
$174.41
+15.2% upside to fair value
Grade B
High Quality
VS
RTX Corporation · Industrials
$172.90
-21.3% upside to fair value
Grade D
QuantHub Verdict
PANW has more upside to fair value
(+15.2%).
RTX trades at a lower forward P/E
(32.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
PANW |
RTX |
| Current Price |
$174.41 |
$172.90 |
| Fair Value Estimate |
$200.93 |
$136.05 |
| Upside to Fair Value |
+15.2%
|
-21.3%
|
| Market Cap |
$118.9B |
$232.8B |
| Forward P/E |
94.6x
|
32.1x
|
| EV / EBITDA |
52.3x
|
19.2x
|
| Price / Sales |
12.0x
|
2.6x
|
| Price / FCF |
29.2x
|
27.9x
|
| Revenue Growth YoY |
+14.9%
|
+8.7%
|
| Gross Margin |
73.5%
|
20.2%
|
| Operating Margin |
14.4%
|
10.4%
|
| Return on Equity |
15.5%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.42%
|
3.59%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Palo Alto Networks, Inc. is a leading global cybersecurity company specializing in AI-driven security platforms with a strong recurring revenue base exceeding 80% of total revenue. The company benefits from a high gross margin of 73.5% and solid profitability with a net margin of 13.0%, supported by accelerating revenue growth of 14.9% and earnings growth of 61.6% in the most recent quarter. Unde…
RTX Corporation is a leading aerospace and defense company with a diversified portfolio spanning Pratt & Whitney jet engines, Collins Aerospace avionics, and Raytheon Intelligence & Space defense systems. The company benefits from a strong competitive moat supported by a $271 billion backlog and multi-year contracts, driving consistent revenue growth of 10% in 2025 and 9% in Q1 2026. Earnings gro…
Accumulation Zones
| Metric |
PANW |
RTX |
| Zone Low |
$150.70 |
$102.04 |
| Zone High |
$170.79 |
$115.64 |
| In Buy Zone? |
No
|
No
|