Palo Alto Networks Inc (PANW)vsPaycom Software, Inc. (PAYC)
PANW
Palo Alto Networks Inc
$394.49
-3.53%
TECHNOLOGY · Cap: $279.76B
PAYC
Paycom Software, Inc.
$262.79
+0.32%
TECHNOLOGY · Cap: $11.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 436% more annual revenue ($11.48B vs $2.14B). PAYC leads profitability with a 22.8% profit margin vs 2.7%. PAYC appears more attractively valued with a PEG of 1.17. PAYC earns a higher WallStSmart Score of 74/100 (B).
PANW
Hold49
out of 100
Grade: D+
PAYC
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.7%
Fair Value
$498.95
Current Price
$394.49
$104.46 discount
Margin of Safety
+74.5%
Fair Value
$465.15
Current Price
$262.79
$202.36 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Every $100 of equity generates 85 in profit
Strong operational efficiency at 31.7%
Keeps 23 of every $100 in revenue as profit
Earnings expanding 48.1% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 11.7x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Moderate valuation
Trading at 20.0x book value
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.5% demonstrates continued momentum.
Bull Case : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.8% and operating margin at 31.7%. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 855.0x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : PAYC
The primary concerns for PAYC are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.72 is elevated, increasing financial risk.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while PAYC is a mature play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.93 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (74/100 vs 49/100), backed by strong 22.8% margins. PANW offers better value entry with a 21.7% margin of safety. Both earn "Strong 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.
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.
Paycom Software, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.
Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?