Microsoft or Fortinet: Which Stock Has More Upside?
Even as Fortinet fell -6.3% during the past Day, its peer Microsoft may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Microsoft (MSFT) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Fortinet (FTNT) stock, suggesting you may be better off investing in MSFT
- MSFT’s quarterly revenue growth was 18.4%, vs. FTNT’s 13.6%.
- In addition, its Last 12 Months revenue growth came in at 15.6%, ahead of FTNT’s 14.5%.
- MSFT leads on profitability over both periods – LTM margin of 46.3% and 3-year average of 44.6%.
A single stock can be risky, but there is a huge value to a broader, diversified approach. Quiz time: Over the last 5 years, which index do you think the Trefis High Quality Portfolio outperformed — the S&P 500, the S&P 1500 Equal Weighted, or both? The answer might surprise you. See how our advisory framework helps stack the odds in your favor.
FTNT provides integrated, automated cybersecurity solutions and secure networking products, including hardware and software licenses for security, switching, and connectivity across multiple global regions. MSFT develops and supports software, services, and devices, offering productivity tools, business solutions, and Windows OEM licensing.
Valuation & Performance Overview
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| FTNT | MSFT | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 31.5 | 27.2 | MSFT |
| Revenue Growth | |||
| Last Quarter | 13.6% | 18.4% | MSFT |
| Last 12 Months | 14.5% | 15.6% | MSFT |
| Last 3 Year Average | 18.7% | 13.2% | FTNT |
| Operating Margins | |||
| Last 12 Months | 30.9% | 46.3% | MSFT |
| Last 3 Year Average | 26.9% | 44.6% | MSFT |
| Momentum | |||
| Last 3 Year Return | 71.0% | 130.1% | MSFT |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: FTNT Revenue Comparison | MSFT Revenue Comparison
See more margin details: FTNT Operating Income Comparison | MSFT Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell MSFT Stock to see if Microsoft’s edge holds up under the hood or if Fortinet still has cards to play (see Buy or Sell FTNT Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| FTNT Return | 39% | 142% | -32% | 20% | 61% | -15% | 277% | <=== | |
| MSFT Return | 43% | 52% | -28% | 58% | 13% | 19% | 231% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 108% | ||
| Monthly Win Rates [3] | |||||||||
| FTNT Win Rate | 50% | 75% | 42% | 58% | 58% | 60% | 57% | ||
| MSFT Win Rate | 67% | 75% | 25% | 67% | 58% | 50% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| FTNT Max Drawdown | -29% | -7% | -36% | -3% | -5% | -21% | -17% | ||
| MSFT Max Drawdown | -14% | -5% | -36% | -7% | -2% | -16% | -13% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/6/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read FTNT Dip Buyer Analyses to see how the stock has fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.