WallStSmart

F5 Networks Inc (FFIV)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 207% more annual revenue ($9.89B vs $3.22B). FFIV leads profitability with a 22.0% profit margin vs 13.0%. FFIV appears more attractively valued with a PEG of 1.71. FFIV earns a higher WallStSmart Score of 63/100 (C+).

FFIV

Buy

63

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 3.3Quality: 7.5
Piotroski: 5/9Altman Z: 2.65

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

FFIVSignificantly Overvalued (-23.4%)

Margin of Safety

-23.4%

Fair Value

$229.00

Current Price

$393.35

$164.35 premium

UndervaluedFair: $229.00Overvalued
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

FFIV3 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
22.0%8/10

Strong operational efficiency at 22.0%

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

FFIV3 concerns · Avg: 4.0/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

P/E RatioValuation
32.5x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
4.0%4/10

4.0% earnings growth

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 : FFIV

The strongest argument for FFIV centers on Debt/Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 22.0% and operating margin at 22.0%. Revenue growth of 11.0% demonstrates continued momentum.

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 : FFIV

The primary concerns for FFIV are PEG Ratio, P/E Ratio, EPS Growth.

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

FFIV profiles as a mature stock while PANW is a value play — different risk/reward profiles.

FFIV carries more volatility with a beta of 1.05 — 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.

Bottom Line

FFIV scores higher overall (63/100 vs 57/100), backed by strong 22.0% margins and 11.0% revenue growth. 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.

F5 Networks Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

F5, Inc. is an American company that specializes in application delivery networking (ADN), application availability & performance, multi-cloud management, application security, network security, access & authorization and online fraud prevention. F5 is headquartered in Seattle, Washington, with additional development, manufacturing, and administrative offices worldwide.

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.

Want to dig deeper into these stocks?