Palo Alto Networks Inc (PANW)vsPegasystems Inc (PEGA)
PANW
Palo Alto Networks Inc
$179.32
-1.22%
TECHNOLOGY · Cap: $145.43B
PEGA
Pegasystems Inc
$35.67
-0.81%
TECHNOLOGY · Cap: $5.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 482% more annual revenue ($9.89B vs $1.70B). PEGA leads profitability with a 20.0% profit margin vs 13.0%. PANW appears more attractively valued with a PEG of 3.05. PANW earns a higher WallStSmart Score of 56/100 (C).
PANW
Buy56
out of 100
Grade: C
PEGA
Hold45
out of 100
Grade: D+
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
+63.9%
Fair Value
$105.15
Current Price
$35.67
$69.48 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 52 in profit
Conservative balance sheet, low leverage
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Trading at 13.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 8.5x book value
Expensive relative to growth rate
Revenue declined 9.6%
Earnings declined 60.6%
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 : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 8.6%.
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 : PEGA
The primary concerns for PEGA are Price/Book, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
PANW profiles as a value stock while PEGA is a declining play — different risk/reward profiles.
PEGA carries more volatility with a beta of 1.10 — 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
PANW scores higher overall (56/100 vs 45/100) and 14.9% revenue growth. PEGA offers better value entry with a 63.9% 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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