WallStSmart

Cognyte Software Ltd (CGNT)vsPalo Alto Networks Inc (PANW)

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Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 2622% more annual revenue ($11.48B vs $421.71M). PANW leads profitability with a 2.7% profit margin vs -0.0%. PANW earns a higher WallStSmart Score of 51/100 (C-).

CGNT

Hold

44

out of 100

Grade: D

Growth: 7.3Profit: 3.0Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.06

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

CGNTFair Value (-3.5%)

Margin of Safety

-3.5%

Fair Value

$6.96

Current Price

$9.08

$2.12 premium

UndervaluedFair: $6.96Overvalued
PANWUndervalued (+26.6%)

Margin of Safety

+26.6%

Fair Value

$498.68

Current Price

$365.87

$132.81 discount

UndervaluedFair: $498.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CGNT2 strengths · Avg: 9.5/10
EPS GrowthGrowth
177.7%10/10

Earnings expanding 177.7% YoY

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

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

CGNT4 concerns · Avg: 2.5/10
Market CapQuality
$702.27M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

Return on EquityProfitability
-0.0%2/10

ROE of -0.0% — below average capital efficiency

Free Cash FlowQuality
$-1.46M2/10

Negative free cash flow — burning cash

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

Expensive relative to growth rate

Price/BookValuation
10.8x4/10

Trading at 10.8x 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 : CGNT

The strongest argument for CGNT centers on EPS Growth, Debt/Equity. Revenue growth of 12.0% demonstrates continued momentum.

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 : CGNT

The primary concerns for CGNT are Market Cap, Operating Margin, Return on Equity.

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

CGNT profiles as a turnaround stock while PANW is a hypergrowth play — different risk/reward profiles.

CGNT carries more volatility with a beta of 1.59 — 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

PANW scores higher overall (51/100 vs 44/100) and 34.5% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Cognyte Software Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Cognyte Software Ltd. provides security analysis software to governments and companies around the world. The company is headquartered in Herzliya, Israel.

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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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