WallStSmart

Diamondback Energy Inc (FANG)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondback Energy Inc generates 46% more annual revenue ($14.47B vs $9.89B). PANW leads profitability with a 13.0% profit margin vs 2.0%. PANW appears more attractively valued with a PEG of 3.09. PANW earns a higher WallStSmart Score of 56/100 (C).

FANG

Hold

41

out of 100

Grade: D

Growth: 5.3Profit: 4.0Value: 4.7Quality: 3.3
Piotroski: 1/9Altman Z: 1.24

PANW

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 1/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FANGUndervalued (+44.7%)

Margin of Safety

+44.7%

Fair Value

$305.77

Current Price

$188.70

$117.07 discount

UndervaluedFair: $305.77Overvalued
PANWUndervalued (+56.7%)

Margin of Safety

+56.7%

Fair Value

$454.04

Current Price

$207.88

$246.16 discount

UndervaluedFair: $454.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FANG2 strengths · Avg: 9.5/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Market CapQuality
$53.58B9/10

Large-cap with strong market position

PANW3 strengths · Avg: 9.7/10
EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Market CapQuality
$159.39B9/10

Large-cap with strong market position

Areas to Watch

FANG4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.5%3/10

ROE of 0.5% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
57.132/10

Expensive relative to growth rate

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
15.6x4/10

Trading at 15.6x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.092/10

Expensive relative to growth rate

P/E RatioValuation
109.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : FANG

The strongest argument for FANG centers on Price/Book, Market Cap.

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 : FANG

The primary concerns for FANG are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 196.3x leaves little room for execution misses. Thin 2.0% 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 109.2x 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.

FANG generates stronger free cash flow (895M), providing more financial flexibility.

Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PANW scores higher overall (56/100 vs 41/100) and 14.9% revenue growth. FANG offers better value entry with a 44.7% 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.

Diamondback Energy Inc

ENERGY · OIL & GAS E&P · USA

Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.

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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