Okta (NASDAQ: OKTA) and Palo Alto Networks (NASDAQ: PANW) compete in similar niches, but their stock returns recently couldn't be more different. Okta's shares are down by more than 70% since the start of 2022 as the company struggles to integrate a huge new platform. Palo Alto Networks, meanwhile, is gaining market share and eyeing sustainable profitability for the first time in years.

As you might expect given those divergent operating trajectories, there's a big valuation gap between these businesses. But which one is likely to deliver the best returns from here for patient investors with a multiyear time frame?

At first glance, Okta might seem like the better growth stock. Sales were up 43% in its most recent fiscal quarter compared to the 27% increase that Palo Alto Networks reported. Yet Okta's momentum isn't nearly as strong. Sales growth missed management's expectations by a wide enough mark that it lowered its full-year outlook. Palo Alto Networks, meanwhile, raised its fiscal year forecast.

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Source Fool.com