Palo Alto Networks Inc (PANW)vsRichardson Electronics Ltd (RELL)
PANW
Palo Alto Networks Inc
$319.00
-1.52%
TECHNOLOGY · Cap: $273.25B
RELL
Richardson Electronics Ltd
$16.69
-11.03%
TECHNOLOGY · Cap: $250.09M
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 4850% more annual revenue ($10.61B vs $214.26M). PANW leads profitability with a 8.0% profit margin vs 1.8%. RELL appears more attractively valued with a PEG of 1.71. RELL earns a higher WallStSmart Score of 52/100 (C-).
PANW
Hold47
out of 100
Grade: D+
RELL
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$467.52
Current Price
$319.00
$148.52 discount
Margin of Safety
-59.6%
Fair Value
$9.02
Current Price
$16.69
$7.67 premium
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 221.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Trading at 9.4x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
3.1% revenue growth
Smaller company, higher risk/reward
ROE of 2.4% — below average capital efficiency
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 : RELL
The strongest argument for RELL centers on EPS Growth, Debt/Equity, Altman Z-Score.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 294.1x leaves little room for execution misses.
Bear Case : RELL
The primary concerns for RELL are PEG Ratio, Revenue Growth, Market Cap. A P/E of 63.6x leaves little room for execution misses. Thin 1.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while RELL is a value play — different risk/reward profiles.
RELL carries more volatility with a beta of 1.25 — 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
RELL scores higher overall (52/100 vs 47/100). PANW offers better value entry with a 32.8% 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.
Richardson Electronics Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
Richardson Electronics, Ltd. is engaged in microwave and power technologies, custom display solutions, and healthcare equipment businesses in North America, Asia Pacific, Europe, and Latin America. The company is headquartered in LaFox, Illinois.
Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?