WallStSmart

Ouster, Inc. Common Stock (OUST)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 5503% more annual revenue ($11.48B vs $204.91M). PANW leads profitability with a 2.7% profit margin vs -26.0%. PANW earns a higher WallStSmart Score of 51/100 (C-).

OUST

Avoid

28

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 6.0Quality: 7.0
Piotroski: 5/9Altman Z: -1.51

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

OUSTUndervalued (+24.3%)

Margin of Safety

+24.3%

Fair Value

$24.94

Current Price

$35.05

$10.11 discount

UndervaluedFair: $24.94Overvalued
PANWUndervalued (+27.4%)

Margin of Safety

+27.4%

Fair Value

$500.75

Current Price

$363.58

$137.17 discount

UndervaluedFair: $500.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OUST2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
55.9%10/10

Revenue surging 55.9% year-over-year

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

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

OUST4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-20.3%2/10

ROE of -20.3% — below average capital efficiency

Free Cash FlowQuality
$-15.41M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-1.512/10

Distress zone — elevated risk

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

Expensive relative to growth rate

Price/BookValuation
10.8x4/10

Trading at 10.8x 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 : OUST

The strongest argument for OUST centers on Revenue Growth, Debt/Equity. Revenue growth of 55.9% 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 : OUST

The primary concerns for OUST are EPS Growth, Return on Equity, Free Cash Flow.

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

OUST carries more volatility with a beta of 3.25 — expect wider price swings.

OUST is growing revenue faster at 55.9% — sustainability is the question.

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

Monitor ELECTRONIC COMPONENTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PANW scores higher overall (51/100 vs 28/100) and 34.4% revenue growth. OUST offers better value entry with a 24.3% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ouster, Inc. Common Stock

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Ouster, Inc. designs and manufactures digital lidar sensors for the industrial automation, intelligent infrastructure, robotics and automotive markets. The company is headquartered in San Francisco, California.

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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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