Palo Alto Networks Inc (PANW)vsPaylocity Holding Corporation (PCTY)
PANW
Palo Alto Networks Inc
$272.05
+1.76%
TECHNOLOGY · Cap: $241.01B
PCTY
Paylocity Holding Corporation
$113.46
+0.71%
TECHNOLOGY · Cap: $5.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 473% more annual revenue ($9.89B vs $1.73B). PCTY leads profitability with a 14.9% profit margin vs 13.0%. PCTY appears more attractively valued with a PEG of 0.86. PCTY earns a higher WallStSmart Score of 74/100 (B).
PANW
Buy57
out of 100
Grade: C
PCTY
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.7%
Fair Value
$441.96
Current Price
$272.05
$169.91 discount
Margin of Safety
+55.3%
Fair Value
$240.76
Current Price
$113.46
$127.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Strong operational efficiency at 31.2%
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Growing faster than its price suggests
Earnings expanding 27.3% YoY
Areas to Watch
ROE of 3.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, EPS Growth, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.
Bull Case : PCTY
The strongest argument for PCTY centers on Operating Margin, Return on Equity, Debt/Equity. Revenue growth of 10.5% demonstrates continued momentum. PEG of 0.86 suggests the stock is reasonably priced for its growth.
Bear Case : PANW
The primary concerns for PANW are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 256.2x leaves little room for execution misses.
Bear Case : PCTY
The primary concerns for PCTY are Altman Z-Score.
Key Dynamics to Monitor
PANW carries more volatility with a beta of 0.77 — expect wider price swings.
PANW is growing revenue faster at 14.9% — 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
PCTY scores higher overall (74/100 vs 57/100) and 10.5% revenue growth. PANW offers better value entry with a 39.7% 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.
Paylocity Holding Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.
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