WallStSmart

Palo Alto Networks Inc (PANW)vsSemtech Corporation (SMTC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 842% more annual revenue ($9.89B vs $1.05B). PANW leads profitability with a 13.0% profit margin vs -3.9%. SMTC appears more attractively valued with a PEG of 1.21. PANW earns a higher WallStSmart Score of 56/100 (C).

PANW

Buy

56

out of 100

Grade: C

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

SMTC

Avoid

33

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 4.3Quality: 5.8
Piotroski: 5/9Altman Z: 1.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+59.5%)

Margin of Safety

+59.5%

Fair Value

$454.04

Current Price

$183.68

$270.36 discount

UndervaluedFair: $454.04Overvalued
SMTCSignificantly Overvalued (-69.6%)

Margin of Safety

-69.6%

Fair Value

$52.21

Current Price

$119.19

$66.98 premium

UndervaluedFair: $52.21Overvalued

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
$146.86B9/10

Large-cap with strong market position

SMTC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
13.7x4/10

Trading at 13.7x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.042/10

Expensive relative to growth rate

P/E RatioValuation
101.2x2/10

Premium valuation, high expectations priced in

SMTC4 concerns · Avg: 2.0/10
Price/BookValuation
20.1x2/10

Trading at 20.1x book value

Return on EquityProfitability
-7.4%2/10

ROE of -7.4% — below average capital efficiency

EPS GrowthGrowth
-32.7%2/10

Earnings declined 32.7%

Altman Z-ScoreHealth
1.292/10

Distress zone — elevated risk

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 : SMTC

PEG of 1.21 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 : SMTC

The primary concerns for SMTC are Price/Book, Return on Equity, EPS Growth.

Key Dynamics to Monitor

PANW profiles as a value stock while SMTC is a turnaround play — different risk/reward profiles.

SMTC carries more volatility with a beta of 2.06 — expect wider price swings.

PANW is growing revenue faster at 14.9% — sustainability is the question.

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

Bottom Line

PANW scores higher overall (56/100 vs 33/100) and 14.9% revenue growth. Both earn "Buy" and "Avoid" 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.

Semtech Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

Semtech Corporation designs, develops, manufactures, and markets mixed-signal and analog semiconductor products and advanced algorithms. The company is headquartered in Camarillo, California.

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