WallStSmart

CDW Corp (CDW)vsPalo Alto Networks Inc (PANW)

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Smart Verdict

WallStSmart Research — data-driven comparison

CDW Corp generates 105% more annual revenue ($23.50B vs $11.48B). CDW leads profitability with a 4.6% profit margin vs 2.7%. CDW appears more attractively valued with a PEG of 1.34. CDW earns a higher WallStSmart Score of 59/100 (C).

CDW

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 6.0Quality: 4.0
Piotroski: 3/9Altman Z: 1.84

PANW

Buy

51

out of 100

Grade: C-

Growth: 9.3Profit: 4.5Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CDWUndervalued (+4.6%)

Margin of Safety

+4.6%

Fair Value

$141.44

Current Price

$149.77

$8.33 discount

UndervaluedFair: $141.44Overvalued
PANWUndervalued (+26.6%)

Margin of Safety

+26.6%

Fair Value

$498.68

Current Price

$350.20

$148.48 discount

UndervaluedFair: $498.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CDW1 strengths · Avg: 10.0/10
Return on EquityProfitability
44.2%10/10

Every $100 of equity generates 44 in profit

PANW5 strengths · Avg: 9.6/10
Market CapQuality
$299.44B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.5%10/10

Revenue surging 34.5% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.25B8/10

Generating 1.3B in free cash flow

Areas to Watch

CDW4 concerns · Avg: 3.5/10
EPS GrowthGrowth
4.9%4/10

4.9% earnings growth

Altman Z-ScoreHealth
1.844/10

Grey zone — moderate risk

Profit MarginProfitability
4.6%3/10

4.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PANW4 concerns · Avg: 3.5/10
PEG RatioValuation
1.874/10

Expensive relative to growth rate

Price/BookValuation
10.4x4/10

Trading at 10.4x book value

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CDW

The strongest argument for CDW centers on Return on Equity. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bull Case : PANW

The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.5% demonstrates continued momentum.

Bear Case : CDW

The primary concerns for CDW are EPS Growth, Altman Z-Score, Profit Margin. Debt-to-equity of 2.44 is elevated, increasing financial risk. Thin 4.6% margins leave little buffer for downturns.

Bear Case : PANW

The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 914.7x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

CDW profiles as a value stock while PANW is a hypergrowth play — different risk/reward profiles.

CDW carries more volatility with a beta of 0.94 — expect wider price swings.

PANW is growing revenue faster at 34.5% — sustainability is the question.

PANW generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

CDW scores higher overall (59/100 vs 51/100). PANW offers better value entry with a 26.6% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CDW Corp

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

CDW Corporation, headquartered in Lincolnshire, Illinois, is a provider of technology products and services for business, government and education.

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Palo Alto Networks Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.

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