FTNT vs. CHKP: Which Network Security Stock is the Better Pick?

The cybersecurity landscape continues to evolve rapidly, with network security remaining a critical priority for enterprises worldwide. Two industry stalwarts, Fortinet FTNT and Check Point Software Technologies CHKP, have established themselves as leading providers of network security solutions, each offering comprehensive platforms designed to protect organizations from increasingly sophisticated threats.

Both companies operate in the competitive network security space, providing firewall solutions, secure access service edge (SASE) platforms, and AI-driven security operations. Their recent quarterly results showcase different trajectories, with Fortinet demonstrating accelerated growth momentum while Check Point focuses on strategic transformation under new leadership. The timing for comparison is particularly relevant as both firms navigate macro uncertainties while positioning themselves for the next phase of cybersecurity evolution.

Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for FTNT Stock

Fortinet's recent performance demonstrates exceptional momentum across multiple business segments, positioning the company for sustained growth throughout 2025. The company's unified SASE strategy is gaining significant traction, with security service building growth exceeding 110% and unified SASE now representing 25% of total business. This remarkable expansion reflects strong market demand for Fortinet's integrated approach to secure networking.

The company's Quantum Force appliances continue to drive impressive results, with product revenues growing 14% year over year. Fortinet's leadership in SD-WAN adoption is particularly noteworthy, with 73% of large enterprise customers having adopted their SD-WAN solution, creating a natural pathway for FortiSASE expansion. The FortiSASE penetration among large enterprises increased nearly 10% quarter over quarter to 11%, indicating robust adoption momentum.

Fortinet's AI-driven secure operations segment grew 29%, accounting for 10% of business, while maintaining strong operational efficiency with a record first-quarter operating margin of 34%. The company's financial performance is equally compelling, with a record free cash flow of $783 million and a margin of 51%. Looking ahead, Fortinet is well-positioned to benefit from the anticipated firewall refresh cycle gaining momentum in the second half of 2025, supported by its recently announced FortiGate 700G series delivering superior price-performance advantages over competitors.

The Zacks Consensus Estimate for 2025 earnings is pegged at $2.48 per share, indicating 4.64% growth year-over-year.

Fortinet, Inc. Price and Consensus

Fortinet, Inc. price-consensus-chart | Fortinet, Inc. Quote

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

The Case for CHKP Stock

Check Point presents a solid foundation with steady performance and strategic initiatives aimed at reinvigorating growth. The company's Quantum Force appliances showed continued strong demand, driving revenues above the midpoint of guidance ranges. Check Point's Infinity platform demonstrated healthy momentum, with revenues exceeding 15% of total revenues and strong double-digit growth year over year.

Under new CEO Nadav Zafrir's leadership, the company is implementing a comprehensive transformation strategy focused on accelerating growth and enhancing go-to-market capabilities. The strategic partnership with Wiz represents a pragmatic approach to cloud security, allowing Check Point to focus resources on core competencies like SASE while leveraging best-of-breed partnerships. 

Check Point's SASE strategy emphasizes a hybrid approach, potentially offering advantages in enterprise environments requiring both on-premises and cloud flexibility. The company maintains strong operational metrics with an 88% gross margin and 41% operating margin, demonstrating efficient business operations. However, revenue growth of 7% lags industry peers, and the company faces execution challenges in scaling newer growth initiatives. The formation of a new workforce division targeting SaaS solutions shows promise, though results remain to be proven in the coming quarters.

The Zacks Consensus Estimate for 2025 earnings is pegged at $9.91 per share, indicating 8.91% growth year-over-year.

Check Point Software Technologies Ltd. Price and Consensus

Check Point Software Technologies Ltd. price-consensus-chart | Check Point Software Technologies Ltd. Quote

Valuation and Price Performance Comparison

Fortinet has demonstrated superior stock performance with shares gaining 11.6% in three months, outperforming CHKP's growth of 5.8%. Both stocks have underperformed the broader Zacks Computer and Technology sector.

FTNT Outperforms CHKP in 3-Month Period

Both stocks trade at premium valuations reflecting their market-leading positions in network security. Fortinet commands a significant valuation premium with a price-to-sales ratio of 11.5x compared to CHKP's 8.91x multiple. Fortinet's valuation premium appears more justified given its superior growth trajectory and expanding market opportunities in SASE and AI-driven security operations. Check Point's valuation reflects market confidence in the new leadership's transformation strategy, though execution risks remain elevated during this transition period.

FTNT vs. CHKP: P/S F12M Ratio

Conclusion

Fortinet emerges as the superior investment choice for 2025, offering stronger revenue growth momentum, a better-positioned SASE strategy, and clearer catalysts, including the firewall refresh cycle. The company's unified platform approach, superior financial performance, and expanding market share in key growth segments provide compelling upside potential. While Check Point offers stability and transformation potential under new leadership, execution risks and a slower growth trajectory suggest that investors should consider holding existing positions or waiting for more attractive entry points. Fortinet's operational excellence, strategic positioning, and growth acceleration make it the preferred pick for investors seeking cybersecurity exposure in the current environment. FTNT currently carries a Zacks Rank #2 (Buy), whereas CHKP has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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