WallStSmart

Palo Alto Networks Inc (PANW)vsShoals Technologies Group Inc (SHLS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 1981% more annual revenue ($9.89B vs $475.33M). PANW leads profitability with a 13.0% profit margin vs 7.1%. SHLS appears more attractively valued with a PEG of 0.74. SHLS earns a higher WallStSmart Score of 67/100 (B-).

PANW

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 1/9Altman Z: 1.02

SHLS

Strong Buy

67

out of 100

Grade: B-

Growth: 8.7Profit: 5.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+60.8%)

Margin of Safety

+60.8%

Fair Value

$457.02

Current Price

$179.32

$277.70 discount

UndervaluedFair: $457.02Overvalued
SHLSUndervalued (+54.4%)

Margin of Safety

+54.4%

Fair Value

$21.46

Current Price

$7.34

$14.12 discount

UndervaluedFair: $21.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW3 strengths · Avg: 9.7/10
EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Market CapQuality
$145.43B9/10

Large-cap with strong market position

SHLS4 strengths · Avg: 8.5/10
Revenue GrowthGrowth
38.6%10/10

Revenue surging 38.6% year-over-year

PEG RatioValuation
0.748/10

Growing faster than its price suggests

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
21.0%8/10

Earnings expanding 21.0% YoY

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
13.4x4/10

Trading at 13.4x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.052/10

Expensive relative to growth rate

P/E RatioValuation
100.2x2/10

Premium valuation, high expectations priced in

SHLS4 concerns · Avg: 3.3/10
P/E RatioValuation
36.7x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.23B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : PANW

The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.

Bull Case : SHLS

The strongest argument for SHLS centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 38.6% demonstrates continued momentum. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bear Case : PANW

The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 100.2x leaves little room for execution misses.

Bear Case : SHLS

The primary concerns for SHLS are P/E Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

PANW profiles as a value stock while SHLS is a hypergrowth play — different risk/reward profiles.

SHLS carries more volatility with a beta of 1.64 — expect wider price swings.

SHLS is growing revenue faster at 38.6% — sustainability is the question.

PANW generates stronger free cash flow (470M), providing more financial flexibility.

Bottom Line

SHLS scores higher overall (67/100 vs 56/100) and 38.6% revenue growth. PANW offers better value entry with a 60.8% 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.

Shoals Technologies Group Inc

TECHNOLOGY · SOLAR · USA

Shoals Technologies Group, Inc. provides Electric Balance System (EBOS) solutions for solar energy projects in the United States. The company is headquartered in Portland, Tennessee.

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