Cloudflare Inc (NET)vsPalo Alto Networks Inc (PANW)
NET
Cloudflare Inc
$278.98
-1.56%
TECHNOLOGY · Cap: $95.47B
PANW
Palo Alto Networks Inc
$331.83
+1.89%
TECHNOLOGY · Cap: $273.25B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 355% more annual revenue ($10.61B vs $2.33B). PANW leads profitability with a 8.0% profit margin vs -3.7%. NET appears more attractively valued with a PEG of 2.38. PANW earns a higher WallStSmart Score of 47/100 (D+).
NET
Hold35
out of 100
Grade: F
PANW
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.1%
Fair Value
$167.92
Current Price
$278.98
$111.06 premium
Margin of Safety
+32.8%
Fair Value
$467.52
Current Price
$331.83
$135.69 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.5% year-over-year
Large-cap with strong market position
Mega-cap, among the largest globally
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
Trading at 64.6x book value
Trading at 9.8x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : NET
The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.5% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bear Case : NET
The primary concerns for NET are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 2.31 is elevated, increasing financial risk.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 294.1x leaves little room for execution misses.
Key Dynamics to Monitor
NET carries more volatility with a beta of 1.67 — expect wider price swings.
NET is growing revenue faster at 33.5% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PANW scores higher overall (47/100 vs 35/100) and 31.1% revenue growth. Both earn "Hold" 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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