Cloudflare Inc (NET)vsPalo Alto Networks Inc (PANW)
NET
Cloudflare Inc
$280.70
-9.54%
TECHNOLOGY · Cap: $105.51B
PANW
Palo Alto Networks Inc
$365.87
-3.86%
TECHNOLOGY · Cap: $299.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 357% more annual revenue ($11.48B vs $2.51B). PANW leads profitability with a 2.7% profit margin vs -8.2%. PANW appears more attractively valued with a PEG of 1.87. PANW earns a higher WallStSmart Score of 51/100 (C-).
NET
Hold35
out of 100
Grade: F
PANW
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.9%
Fair Value
$184.12
Current Price
$280.70
$96.58 premium
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$365.87
$132.81 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 35.9% year-over-year
Large-cap with strong market position
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
0.0% earnings growth
Weak financial health signals
Trading at 61.7x book value
Expensive relative to growth rate
Trading at 10.8x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : NET
The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 35.9% 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 : NET
The primary concerns for NET are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 2.18 is elevated, increasing financial risk.
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
NET carries more volatility with a beta of 1.65 — expect wider price swings.
NET is growing revenue faster at 35.9% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PANW scores higher overall (51/100 vs 35/100) and 34.5% revenue growth. 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.
Cloudflare Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
CloudFlare, Inc. operates a cloud platform that offers a range of network services to companies around the world. The company is headquartered in San Francisco, California.
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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