Palo Alto Networks Inc (PANW)vsPegasystems Inc (PEGA)
PANW
Palo Alto Networks Inc
$330.65
+13.09%
TECHNOLOGY · Cap: $270.47B
PEGA
Pegasystems Inc
$36.24
+1.46%
TECHNOLOGY · Cap: $5.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 561% more annual revenue ($11.48B vs $1.74B). PEGA leads profitability with a 18.7% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.73. PANW earns a higher WallStSmart Score of 51/100 (C-).
PANW
Buy51
out of 100
Grade: C-
PEGA
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+34.1%
Fair Value
$501.81
Current Price
$330.65
$171.16 discount
Margin of Safety
+61.1%
Fair Value
$97.56
Current Price
$36.24
$61.32 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.4% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Every $100 of equity generates 48 in profit
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 9.8x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Trading at 10.6x book value
Operating margin of 4.6%
Expensive relative to growth rate
Earnings declined 52.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.4% demonstrates continued momentum.
Bull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity. Profitability is solid with margins at 18.7% and operating margin at 4.6%.
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.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, Operating Margin, PEG Ratio.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while PEGA is a mature play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.91 — expect wider price swings.
PANW is growing revenue faster at 34.4% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
PANW scores higher overall (51/100 vs 48/100) and 34.4% revenue growth. PEGA offers better value entry with a 61.1% margin of safety. Both earn "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.
Pegasystems Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Pegasystems Inc. develops, markets, licenses, hosts and supports business software applications in the United States, the rest of the Americas, the United Kingdom, the rest of Europe, the Middle East, Africa, and Asia-Pacific. The company is headquartered in Cambridge, Massachusetts.
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