Palo Alto Networks Inc (PANW)vsPure Storage Inc (PSTG)
PANW
Palo Alto Networks Inc
$358.68
-2.79%
TECHNOLOGY · Cap: $275.72B
PSTG
Pure Storage Inc
$67.79
+4.47%
TECHNOLOGY · Cap: $19.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 190% more annual revenue ($10.61B vs $3.66B). PANW leads profitability with a 8.0% profit margin vs 5.1%. PSTG appears more attractively valued with a PEG of 1.41. PSTG earns a higher WallStSmart Score of 57/100 (C).
PANW
Hold47
out of 100
Grade: D+
PSTG
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.4%
Fair Value
$468.42
Current Price
$358.68
$109.74 discount
Intrinsic value data unavailable for PSTG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Earnings expanding 139.7% YoY
Revenue surging 20.4% year-over-year
Areas to Watch
Trading at 10.5x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Trading at 15.5x book value
5.1% margin — thin
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, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bull Case : PSTG
The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 277.3x leaves little room for execution misses.
Bear Case : PSTG
The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.6x leaves little room for execution misses.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while PSTG is a growth play — different risk/reward profiles.
PSTG carries more volatility with a beta of 1.34 — expect wider price swings.
PANW is growing revenue faster at 31.1% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
PSTG scores higher overall (57/100 vs 47/100) and 20.4% revenue growth. PANW offers better value entry with a 24.4% 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.
Pure Storage Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.
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