Palo Alto Networks Inc (PANW)vsScanSource Inc (SCSC)
PANW
Palo Alto Networks Inc
$272.05
+0.03%
TECHNOLOGY · Cap: $241.01B
SCSC
ScanSource Inc
$45.87
-4.60%
TECHNOLOGY · Cap: $993.26M
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 221% more annual revenue ($9.89B vs $3.09B). PANW leads profitability with a 13.0% profit margin vs 2.4%. SCSC appears more attractively valued with a PEG of 0.75. SCSC earns a higher WallStSmart Score of 58/100 (C).
PANW
Buy57
out of 100
Grade: C
SCSC
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.7%
Fair Value
$441.96
Current Price
$272.05
$169.91 discount
Margin of Safety
+2.4%
Fair Value
$35.50
Current Price
$45.87
$10.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Reasonable price relative to book value
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
ROE of 3.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 3.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, EPS Growth, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.
Bull Case : SCSC
The strongest argument for SCSC centers on Price/Book, Debt/Equity, Altman Z-Score. PEG of 0.75 suggests the stock is reasonably priced for its growth.
Bear Case : PANW
The primary concerns for PANW are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 256.2x leaves little room for execution misses.
Bear Case : SCSC
The primary concerns for SCSC are Market Cap, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
SCSC carries more volatility with a beta of 1.31 — expect wider price swings.
PANW is growing revenue faster at 14.9% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SCSC scores higher overall (58/100 vs 57/100). PANW offers better value entry with a 39.7% 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.
ScanSource Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. The company is headquartered in Greenville, South Carolina.
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