PC Connection Inc (CNXN)vsPalo Alto Networks Inc (PANW)
CNXN
PC Connection Inc
$79.15
-0.65%
TECHNOLOGY · Cap: $2.16B
PANW
Palo Alto Networks Inc
$314.67
-0.26%
TECHNOLOGY · Cap: $299.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 264% more annual revenue ($11.48B vs $3.15B). CNXN leads profitability with a 3.3% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.87. CNXN earns a higher WallStSmart Score of 60/100 (C).
CNXN
Buy60
out of 100
Grade: C
PANW
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CNXN.
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$314.67
$184.01 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
Revenue surging 23.3% year-over-year
Earnings expanding 27.8% YoY
Mega-cap, among the largest globally
Revenue surging 34.5% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
3.3% margin — thin
Operating margin of 4.7%
Weak financial health signals
Expensive relative to growth rate
Trading at 9.3x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : CNXN
The strongest argument for CNXN centers on Debt/Equity, Altman Z-Score, Price/Book. Revenue growth of 23.3% 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 : CNXN
The primary concerns for CNXN are PEG Ratio, Profit Margin, Operating Margin. Thin 3.3% 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
CNXN profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.93 — 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
CNXN scores higher overall (60/100 vs 51/100) and 23.3% revenue growth. 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.
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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