Palo Alto Networks Inc (PANW)vsScanSource Inc (SCSC)
PANW
Palo Alto Networks Inc
$314.67
-0.26%
TECHNOLOGY · Cap: $299.44B
SCSC
ScanSource Inc
$42.78
-5.08%
TECHNOLOGY · Cap: $1.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 256% more annual revenue ($11.48B vs $3.23B). PANW leads profitability with a 2.7% profit margin vs 2.4%. SCSC appears more attractively valued with a PEG of 0.83. SCSC earns a higher WallStSmart Score of 66/100 (B-).
PANW
Buy51
out of 100
Grade: C-
SCSC
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$314.67
$184.01 discount
Margin of Safety
+9.0%
Fair Value
$38.10
Current Price
$42.78
$4.68 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.5% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
17.3% revenue growth
Areas to Watch
Expensive relative to growth rate
Trading at 9.3x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 3.5%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : SCSC
The strongest argument for SCSC centers on Price/Book, Altman Z-Score, Debt/Equity. Revenue growth of 17.3% demonstrates continued momentum. PEG of 0.83 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 914.7x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
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
PANW profiles as a hypergrowth stock while SCSC is a growth play — different risk/reward profiles.
SCSC carries more volatility with a beta of 1.25 — 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
SCSC scores higher overall (66/100 vs 51/100) and 17.3% revenue growth. PANW offers better value entry with a 26.6% margin of safety. Both earn "Strong 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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