Palo Alto Networks Inc (PANW)vsSynopsys Inc (SNPS)
PANW
Palo Alto Networks Inc
$168.91
+0.49%
TECHNOLOGY · Cap: $136.64B
SNPS
Synopsys Inc
$428.67
-0.10%
TECHNOLOGY · Cap: $82.24B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 24% more annual revenue ($9.89B vs $8.01B). SNPS leads profitability with a 13.8% profit margin vs 13.0%. PANW appears more attractively valued with a PEG of 2.17. PANW earns a higher WallStSmart Score of 58/100 (C).
PANW
Buy58
out of 100
Grade: C
SNPS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-99.7%
Fair Value
$84.71
Current Price
$168.91
$84.20 premium
Margin of Safety
-858.5%
Fair Value
$44.68
Current Price
$428.67
$383.99 premium
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 65.5% year-over-year
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 12.6x book value
Weak financial health signals
Premium valuation, high expectations priced in
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : SNPS
The strongest argument for SNPS centers on Revenue Growth, Market Cap, Price/Book. Revenue growth of 65.5% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 92.5x leaves little room for execution misses.
Bear Case : SNPS
The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 65.3x leaves little room for execution misses.
Key Dynamics to Monitor
PANW profiles as a value stock while SNPS is a growth play — different risk/reward profiles.
SNPS carries more volatility with a beta of 1.16 — expect wider price swings.
SNPS is growing revenue faster at 65.5% — sustainability is the question.
SNPS generates stronger free cash flow (822M), providing more financial flexibility.
Bottom Line
PANW scores higher overall (58/100 vs 51/100) and 14.9% revenue growth. 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.
Synopsys Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.
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