Palo Alto Networks Inc (PANW)vsPaycom Software, Inc. (PAYC)
PANW
Palo Alto Networks Inc
$179.32
-1.22%
TECHNOLOGY · Cap: $145.43B
PAYC
Paycom Software, Inc.
$127.93
+2.49%
TECHNOLOGY · Cap: $6.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 382% more annual revenue ($9.89B vs $2.05B). PAYC leads profitability with a 22.1% profit margin vs 13.0%. PAYC appears more attractively valued with a PEG of 1.12. PAYC earns a higher WallStSmart Score of 69/100 (B-).
PANW
Buy56
out of 100
Grade: C
PAYC
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.8%
Fair Value
$457.02
Current Price
$179.32
$277.70 discount
Margin of Safety
+72.3%
Fair Value
$428.41
Current Price
$127.93
$300.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Every $100 of equity generates 27 in profit
Keeps 22 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 28.9%
Areas to Watch
Trading at 13.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.1% earnings growth
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.
Bull Case : PAYC
The strongest argument for PAYC centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 22.1% and operating margin at 28.9%. Revenue growth of 10.2% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 100.2x leaves little room for execution misses.
Bear Case : PAYC
The primary concerns for PAYC are EPS Growth, Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
PANW profiles as a value stock while PAYC is a mature play — different risk/reward profiles.
PAYC carries more volatility with a beta of 0.80 — expect wider price swings.
PANW is growing revenue faster at 14.9% — sustainability is the question.
PANW generates stronger free cash flow (470M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (69/100 vs 56/100), backed by strong 22.1% margins and 10.2% revenue growth. PANW offers better value entry with a 60.8% 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.
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.
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