Palo Alto Networks Inc (PANW)vsSuper Micro Computer Inc (SMCI)
PANW
Palo Alto Networks Inc
$184.56
+1.92%
TECHNOLOGY · Cap: $146.86B
SMCI
Super Micro Computer Inc
$27.09
-1.13%
TECHNOLOGY · Cap: $16.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Super Micro Computer Inc generates 184% more annual revenue ($28.06B vs $9.89B). PANW leads profitability with a 13.0% profit margin vs 3.1%. SMCI appears more attractively valued with a PEG of 0.91. SMCI earns a higher WallStSmart Score of 67/100 (B-).
PANW
Buy56
out of 100
Grade: C
SMCI
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+59.5%
Fair Value
$455.52
Current Price
$184.56
$270.96 discount
Margin of Safety
+85.2%
Fair Value
$216.33
Current Price
$27.09
$189.24 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Revenue surging 123.4% year-over-year
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Trading at 13.8x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
3.1% margin — thin
Operating margin of 3.7%
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : SMCI
The strongest argument for SMCI centers on Revenue Growth, Altman Z-Score, PEG Ratio. Revenue growth of 123.4% demonstrates continued momentum. PEG of 0.91 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 101.2x leaves little room for execution misses.
Bear Case : SMCI
The primary concerns for SMCI are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
PANW profiles as a value stock while SMCI is a hypergrowth play — different risk/reward profiles.
SMCI carries more volatility with a beta of 1.63 — expect wider price swings.
SMCI is growing revenue faster at 123.4% — sustainability is the question.
PANW generates stronger free cash flow (470M), providing more financial flexibility.
Bottom Line
SMCI scores higher overall (67/100 vs 56/100) and 123.4% revenue growth. PANW offers better value entry with a 59.5% 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.
Super Micro Computer Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Super Micro Computer, Inc. develops and manufactures high-performance server and storage solutions based on an open, modular architecture. The company is headquartered in San Jose, California.
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