PC Connection Inc (CNXN)vsPalo Alto Networks Inc (PANW)
CNXN
PC Connection Inc
$63.38
-0.38%
TECHNOLOGY · Cap: $1.60B
PANW
Palo Alto Networks Inc
$179.32
+0.98%
TECHNOLOGY · Cap: $145.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 244% more annual revenue ($9.89B vs $2.87B). PANW leads profitability with a 13.0% profit margin vs 2.9%. CNXN appears more attractively valued with a PEG of 1.68. PANW earns a higher WallStSmart Score of 56/100 (C).
CNXN
Hold45
out of 100
Grade: D
PANW
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+36.5%
Fair Value
$102.56
Current Price
$63.38
$39.18 discount
Margin of Safety
+60.8%
Fair Value
$457.02
Current Price
$179.32
$277.70 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
4.0% earnings growth
Smaller company, higher risk/reward
2.9% margin — thin
Trading at 13.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CNXN
The strongest argument for CNXN centers on Debt/Equity, Altman Z-Score, Price/Book.
Bull Case : PANW
The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.
Bear Case : CNXN
The primary concerns for CNXN are PEG Ratio, EPS Growth, Market Cap. Thin 2.9% margins leave little buffer for downturns.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 100.2x leaves little room for execution misses.
Key Dynamics to Monitor
CNXN carries more volatility with a beta of 0.84 — expect wider price swings.
PANW is growing revenue faster at 14.9% — sustainability is the question.
PANW generates stronger free cash flow (470M), providing more financial flexibility.
Monitor ELECTRONICS & COMPUTER DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PANW scores higher overall (56/100 vs 45/100) and 14.9% revenue growth. CNXN offers better value entry with a 36.5% margin of safety. 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.
PC Connection Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
PC Connection, Inc., provides a range of information technology (IT) solutions. The company is headquartered in Merrimack, New Hampshire.
Visit Website →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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