Palo Alto Networks Inc (PANW)vsSynopsys Inc (SNPS)
PANW
Palo Alto Networks Inc
$375.09
+0.15%
TECHNOLOGY · Cap: $270.47B
SNPS
Synopsys Inc
$378.47
+2.93%
TECHNOLOGY · Cap: $76.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 22% more annual revenue ($11.48B vs $9.42B). SNPS leads profitability with a 11.4% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.73. SNPS earns a higher WallStSmart Score of 59/100 (C).
PANW
Buy51
out of 100
Grade: C-
SNPS
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+34.1%
Fair Value
$501.81
Current Price
$375.09
$126.72 discount
Margin of Safety
-88.0%
Fair Value
$211.39
Current Price
$378.47
$167.08 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.4% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Revenue surging 42.4% year-over-year
Earnings expanding 89.3% YoY
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 11.1x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Expensive relative to growth rate
ROE of 3.5% — below average capital efficiency
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 34.4% demonstrates continued momentum.
Bull Case : SNPS
The strongest argument for SNPS centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 42.4% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 295.2x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : SNPS
The primary concerns for SNPS are PEG Ratio, Return on Equity, Piotroski F-Score. A P/E of 69.5x leaves little room for execution misses.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while SNPS is a growth play — different risk/reward profiles.
SNPS carries more volatility with a beta of 1.23 — expect wider price swings.
SNPS is growing revenue faster at 42.4% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
SNPS scores higher overall (59/100 vs 51/100) and 42.4% revenue growth. PANW offers better value entry with a 34.1% 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.
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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