WallStSmart

Check Point Software Technologies Ltd (CHKP)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 259% more annual revenue ($9.89B vs $2.76B). CHKP leads profitability with a 38.4% profit margin vs 13.0%. CHKP appears more attractively valued with a PEG of 1.30. CHKP earns a higher WallStSmart Score of 64/100 (C+).

CHKP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 9.0Value: 5.3Quality: 6.5
Piotroski: 3/9Altman Z: 4.07

PANW

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHKPSignificantly Overvalued (-52.8%)

Margin of Safety

-52.8%

Fair Value

$115.46

Current Price

$135.82

$20.36 premium

UndervaluedFair: $115.46Overvalued
PANWUndervalued (+39.7%)

Margin of Safety

+39.7%

Fair Value

$441.96

Current Price

$272.05

$169.91 discount

UndervaluedFair: $441.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHKP5 strengths · Avg: 9.2/10
Return on EquityProfitability
37.6%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
38.4%10/10

Keeps 38 of every $100 in revenue as profit

Altman Z-ScoreHealth
4.0710/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.7%8/10

Strong operational efficiency at 27.7%

PANW3 strengths · Avg: 10.0/10
Market CapQuality
$241.01B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Areas to Watch

CHKP2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PANW4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.0%3/10

ROE of 3.0% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.042/10

Expensive relative to growth rate

P/E RatioValuation
256.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : CHKP

The strongest argument for CHKP centers on Return on Equity, Profit Margin, Altman Z-Score. Profitability is solid with margins at 38.4% and operating margin at 27.7%. PEG of 1.30 suggests the stock is reasonably priced for its growth.

Bull Case : PANW

The strongest argument for PANW centers on Market Cap, EPS Growth, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.

Bear Case : CHKP

The primary concerns for CHKP are Revenue Growth, Piotroski F-Score.

Bear Case : PANW

The primary concerns for PANW are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 256.2x leaves little room for execution misses.

Key Dynamics to Monitor

PANW carries more volatility with a beta of 0.77 — expect wider price swings.

PANW is growing revenue faster at 14.9% — sustainability is the question.

PANW generates stronger free cash flow (788M), providing more financial flexibility.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CHKP scores higher overall (64/100 vs 57/100), backed by strong 38.4% margins. PANW offers better value entry with a 39.7% 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.

Check Point Software Technologies Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Check Point Software Technologies Ltd. develops, markets and supports a range of IT security products and services globally. The company is headquartered in Tel Aviv, Israel.

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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