Palo Alto Networks Inc (PANW)vsStoneCo Ltd (STNE)
PANW
Palo Alto Networks Inc
$285.26
-1.94%
TECHNOLOGY · Cap: $231.90B
STNE
StoneCo Ltd
$10.74
-3.35%
TECHNOLOGY · Cap: $2.74B
Smart Verdict
WallStSmart Research — data-driven comparison
StoneCo Ltd generates 28% more annual revenue ($13.54B vs $10.61B). STNE leads profitability with a 26.0% profit margin vs 8.0%. STNE trades at a lower P/E of 4.2x. STNE earns a higher WallStSmart Score of 77/100 (B+).
PANW
Hold47
out of 100
Grade: D+
STNE
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+38.8%
Fair Value
$470.35
Current Price
$285.26
$185.09 discount
Margin of Safety
+79.4%
Fair Value
$85.94
Current Price
$10.74
$75.20 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 44.3%
Earnings expanding 273.8% YoY
Every $100 of equity generates 28 in profit
Keeps 26 of every $100 in revenue as profit
Areas to Watch
Trading at 8.4x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
4.3% revenue growth
Elevated debt levels
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bull Case : STNE
The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.0% and operating margin at 44.3%.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 247.4x leaves little room for execution misses.
Bear Case : STNE
The primary concerns for STNE are Revenue Growth, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while STNE is a value play — different risk/reward profiles.
STNE carries more volatility with a beta of 1.59 — expect wider price swings.
PANW is growing revenue faster at 31.1% — sustainability is the question.
STNE generates stronger free cash flow (3.1B), providing more financial flexibility.
Bottom Line
STNE scores higher overall (77/100 vs 47/100), backed by strong 26.0% margins. PANW offers better value entry with a 38.8% margin of safety. Both earn "Strong Buy" and "Hold" 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.
StoneCo Ltd
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.
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