WallStSmart

Palo Alto Networks Inc (PANW)vsPTC Inc (PTC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 289% more annual revenue ($11.48B vs $2.95B). PTC leads profitability with a 41.4% profit margin vs 2.7%. PTC appears more attractively valued with a PEG of 1.31. PTC earns a higher WallStSmart Score of 60/100 (C+).

PANW

Hold

49

out of 100

Grade: D+

Growth: 9.3Profit: 4.5Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.11

PTC

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 9.5Value: 4.7Quality: 7.0
Piotroski: 6/9Altman Z: 2.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+21.7%)

Margin of Safety

+21.7%

Fair Value

$498.95

Current Price

$394.49

$104.46 discount

UndervaluedFair: $498.95Overvalued
PTCSignificantly Overvalued (-59.3%)

Margin of Safety

-59.3%

Fair Value

$97.70

Current Price

$194.97

$97.27 premium

UndervaluedFair: $97.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW5 strengths · Avg: 9.6/10
Market CapQuality
$279.76B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.5%10/10

Revenue surging 34.5% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.25B8/10

Generating 1.3B in free cash flow

PTC3 strengths · Avg: 9.3/10
Return on EquityProfitability
35.3%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
41.4%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

Areas to Watch

PANW4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

PTC2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-6.8%2/10

Revenue declined 6.8%

EPS GrowthGrowth
-12.0%2/10

Earnings declined 12.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : PANW

The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.5% demonstrates continued momentum.

Bull Case : PTC

The strongest argument for PTC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 41.4% and operating margin at 28.2%. PEG of 1.31 suggests the stock is reasonably priced for its growth.

Bear Case : PANW

The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 855.0x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.

Bear Case : PTC

The primary concerns for PTC are Revenue Growth, EPS Growth.

Key Dynamics to Monitor

PANW profiles as a hypergrowth stock while PTC is a declining play — different risk/reward profiles.

PTC carries more volatility with a beta of 0.99 — expect wider price swings.

PANW is growing revenue faster at 34.5% — sustainability is the question.

PANW generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

PTC scores higher overall (60/100 vs 49/100), backed by strong 41.4% margins. PANW offers better value entry with a 21.7% 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.

PTC Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

PTC Inc. is an American computer software and services company founded in 1985 and headquartered in Boston, Massachusetts.

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