WallStSmart

MACOM Technology Solutions Holdings Inc (MTSI)vsPalo Alto Networks Inc (PANW)

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Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 886% more annual revenue ($11.48B vs $1.16B). MTSI leads profitability with a 20.7% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.73. MTSI earns a higher WallStSmart Score of 68/100 (B-).

MTSI

Strong Buy

68

out of 100

Grade: B-

Growth: 9.3Profit: 7.5Value: 3.7Quality: 7.5
Piotroski: 4/9Altman Z: 1.79

PANW

Buy

51

out of 100

Grade: C-

Growth: 9.3Profit: 4.5Value: 4.7Quality: 4.8
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MTSI.

PANWUndervalued (+27.4%)

Margin of Safety

+27.4%

Fair Value

$500.75

Current Price

$371.76

$128.99 discount

UndervaluedFair: $500.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MTSI5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
35.8%10/10

Revenue surging 35.8% year-over-year

EPS GrowthGrowth
166.7%10/10

Earnings expanding 166.7% YoY

Profit MarginProfitability
20.7%9/10

Keeps 21 of every $100 in revenue as profit

Debt/EquityHealth
0.249/10

Conservative balance sheet, low leverage

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

PANW5 strengths · Avg: 9.6/10
Market CapQuality
$270.47B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.4%10/10

Revenue surging 34.4% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

Areas to Watch

MTSI4 concerns · Avg: 3.5/10
PEG RatioValuation
2.054/10

Expensive relative to growth rate

Price/BookValuation
13.9x4/10

Trading at 13.9x book value

Altman Z-ScoreHealth
1.794/10

Distress zone — elevated risk

P/E RatioValuation
88.9x2/10

Premium valuation, high expectations priced in

PANW4 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : MTSI

The strongest argument for MTSI centers on Revenue Growth, EPS Growth, Profit Margin. Profitability is solid with margins at 20.7% and operating margin at 23.3%. Revenue growth of 35.8% demonstrates continued momentum.

Bull Case : PANW

The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.4% demonstrates continued momentum.

Bear Case : MTSI

The primary concerns for MTSI are PEG Ratio, Price/Book, Altman Z-Score. A P/E of 88.9x leaves little room for execution misses.

Bear Case : PANW

The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 295.2x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

MTSI profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.

MTSI carries more volatility with a beta of 1.71 — expect wider price swings.

MTSI is growing revenue faster at 35.8% — sustainability is the question.

PANW generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

MTSI scores higher overall (68/100 vs 51/100), backed by strong 20.7% margins and 35.8% revenue growth. PANW offers better value entry with a 27.4% margin of safety. Both earn "Strong 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.

MACOM Technology Solutions Holdings Inc

TECHNOLOGY · SEMICONDUCTORS · USA

MACOM Technology Solutions Holdings, Inc. designs and manufactures analog semiconductor solutions for use in wired and wireless applications in the radio frequency (RF), microwave, millimeter wave and light wave spectrum in the United States, China, Asia Pacific and internationally. . . The company is headquartered in Lowell, Massachusetts.

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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