WallStSmart

Palo Alto Networks Inc (PANW)vsSPS Commerce Inc (SPSC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 1216% more annual revenue ($9.89B vs $751.50M). PANW leads profitability with a 13.0% profit margin vs 12.4%. PANW appears more attractively valued with a PEG of 3.05. SPSC earns a higher WallStSmart Score of 63/100 (C+).

PANW

Buy

56

out of 100

Grade: C

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

SPSC

Buy

63

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 6.0Quality: 7.5
Piotroski: 3/9Altman Z: 4.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+60.8%)

Margin of Safety

+60.8%

Fair Value

$457.02

Current Price

$179.32

$277.70 discount

UndervaluedFair: $457.02Overvalued
SPSCUndervalued (+72.5%)

Margin of Safety

+72.5%

Fair Value

$248.95

Current Price

$56.12

$192.83 discount

UndervaluedFair: $248.95Overvalued

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
$145.43B9/10

Large-cap with strong market position

SPSC4 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.6010/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EPS GrowthGrowth
46.9%8/10

Earnings expanding 46.9% YoY

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
13.4x4/10

Trading at 13.4x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.052/10

Expensive relative to growth rate

P/E RatioValuation
100.2x2/10

Premium valuation, high expectations priced in

SPSC2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.712/10

Expensive relative to growth rate

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 : SPSC

The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score, Price/Book. Revenue growth of 12.7% demonstrates continued momentum.

Bear Case : PANW

The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 100.2x leaves little room for execution misses.

Bear Case : SPSC

The primary concerns for SPSC are Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

PANW carries more volatility with a beta of 0.77 — 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.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SPSC scores higher overall (63/100 vs 56/100) and 12.7% revenue growth. PANW offers better value entry with a 60.8% 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.

SPS Commerce Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.

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