Palo Alto Networks Inc (PANW)vsShopify Inc (SHOP)
PANW
Palo Alto Networks Inc
$313.84
-0.26%
TECHNOLOGY · Cap: $299.44B
SHOP
Shopify Inc
$148.91
+3.59%
TECHNOLOGY · Cap: $215.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 16% more annual revenue ($13.27B vs $11.48B). SHOP leads profitability with a 14.5% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.87. SHOP earns a higher WallStSmart Score of 63/100 (C+).
PANW
Buy51
out of 100
Grade: C-
SHOP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.0%
Fair Value
$497.80
Current Price
$313.84
$183.96 discount
Margin of Safety
+22.4%
Fair Value
$150.58
Current Price
$148.91
$1.67 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
Mega-cap, among the largest globally
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
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
Expensive relative to growth rate
Trading at 15.1x book value
Weak financial health signals
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum.
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 : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 112.0x leaves little room for execution misses.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.63 — 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
SHOP scores higher overall (63/100 vs 51/100) and 33.7% revenue growth. PANW offers better value entry with a 37.0% 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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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