WallStSmart

Palo Alto Networks Inc (PANW)vsQualys Inc (QLYS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 1533% more annual revenue ($11.48B vs $702.98M). QLYS leads profitability with a 29.4% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.73. QLYS earns a higher WallStSmart Score of 64/100 (C+).

PANW

Buy

51

out of 100

Grade: C-

Growth: 9.3Profit: 4.5Value: 5.3Quality: 4.8
Piotroski: 1/9

QLYS

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 9.5Value: 4.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+34.1%)

Margin of Safety

+34.1%

Fair Value

$501.81

Current Price

$330.65

$171.16 discount

UndervaluedFair: $501.81Overvalued

Intrinsic value data unavailable for QLYS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW4 strengths · Avg: 10.0/10
Market CapQuality
$270.47B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.4%10/10

Revenue surging 34.4% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

QLYS4 strengths · Avg: 9.8/10
Return on EquityProfitability
35.4%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

PANW4 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
9.8x4/10

Trading at 9.8x 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

QLYS4 concerns · Avg: 3.5/10
P/E RatioValuation
29.5x4/10

Moderate valuation

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

PEG RatioValuation
2.952/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PANW

The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.4% demonstrates continued momentum.

Bull Case : QLYS

The strongest argument for QLYS centers on Return on Equity, Operating Margin, Debt/Equity. Profitability is solid with margins at 29.4% and operating margin at 34.0%. Revenue growth of 11.0% demonstrates continued momentum.

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 : QLYS

The primary concerns for QLYS are P/E Ratio, Price/Book, Altman Z-Score.

Key Dynamics to Monitor

PANW profiles as a hypergrowth stock while QLYS 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

QLYS scores higher overall (64/100 vs 51/100), backed by strong 29.4% margins and 11.0% revenue growth. 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.

Qualys Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Qualys, Inc. provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally. The company is headquartered in Foster City, California.

Want to dig deeper into these stocks?