Palo Alto Networks Inc (PANW)vsSprout Social Inc (SPT)
PANW
Palo Alto Networks Inc
$179.32
-1.22%
TECHNOLOGY · Cap: $145.43B
SPT
Sprout Social Inc
$6.00
+1.35%
TECHNOLOGY · Cap: $364.70M
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 2062% more annual revenue ($9.89B vs $457.55M). PANW leads profitability with a 13.0% profit margin vs -9.5%. SPT appears more attractively valued with a PEG of 0.08. PANW earns a higher WallStSmart Score of 56/100 (C).
PANW
Buy56
out of 100
Grade: C
SPT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.8%
Fair Value
$457.02
Current Price
$179.32
$277.70 discount
Margin of Safety
+82.4%
Fair Value
$39.05
Current Price
$6.00
$33.05 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
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Trading at 13.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -23.4% — below average capital efficiency
Currently unprofitable
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 : SPT
The strongest argument for SPT centers on PEG Ratio, Price/Book. Revenue growth of 12.9% demonstrates continued momentum. PEG of 0.08 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 100.2x leaves little room for execution misses.
Bear Case : SPT
The primary concerns for SPT are EPS Growth, Market Cap, Return on Equity.
Key Dynamics to Monitor
PANW profiles as a value stock while SPT is a turnaround play — different risk/reward profiles.
SPT carries more volatility with a beta of 1.00 — 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 52/100) and 14.9% revenue growth. SPT offers better value entry with a 82.4% 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.
Sprout Social Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Sprout Social, Inc. designs, develops, and operates a web-based social media management tool in the Americas, EMEA, and Asia Pacific. The company is headquartered in Chicago, Illinois.
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