Palo Alto Networks Inc (PANW)vsQualcomm Incorporated (QCOM)
PANW
Palo Alto Networks Inc
$330.65
-2.32%
TECHNOLOGY · Cap: $270.47B
QCOM
Qualcomm Incorporated
$181.97
+2.88%
TECHNOLOGY · Cap: $194.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Qualcomm Incorporated generates 284% more annual revenue ($44.07B vs $11.48B). QCOM leads profitability with a 21.0% profit margin vs 2.7%. QCOM appears more attractively valued with a PEG of 0.79. QCOM earns a higher WallStSmart Score of 58/100 (C).
PANW
Buy51
out of 100
Grade: C-
QCOM
Buy58
out of 100
Grade: C
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
+1.8%
Fair Value
$185.32
Current Price
$181.97
$3.35 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 33 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Growing faster than its price suggests
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
Revenue declined 4.0%
Earnings declined 23.0%
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 : QCOM
The strongest argument for QCOM centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 21.0% and operating margin at 18.5%. PEG of 0.79 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 295.2x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : QCOM
The primary concerns for QCOM are Revenue Growth, EPS Growth.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while QCOM is a declining play — different risk/reward profiles.
QCOM carries more volatility with a beta of 1.68 — 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
QCOM scores higher overall (58/100 vs 51/100), backed by strong 21.0% margins. PANW offers better value entry with a 34.1% margin of safety. Both earn "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.
Qualcomm Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Qualcomm is an American multinational corporation headquartered in San Diego, California, and incorporated in Delaware. It creates semiconductors, software, and services related to wireless technology. It owns patents critical to the 5G, 4G, CDMA2000, TD-SCDMA and WCDMA mobile communications standards.
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