Palo Alto Networks Inc (PANW)vsUbiquiti Networks Inc (UI)
PANW
Palo Alto Networks Inc
$319.00
-1.52%
TECHNOLOGY · Cap: $273.25B
UI
Ubiquiti Networks Inc
$523.05
-2.22%
TECHNOLOGY · Cap: $32.53B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 243% more annual revenue ($10.61B vs $3.10B). UI leads profitability with a 30.4% profit margin vs 8.0%. UI appears more attractively valued with a PEG of 1.10. UI earns a higher WallStSmart Score of 65/100 (B-).
PANW
Hold47
out of 100
Grade: D+
UI
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$467.52
Current Price
$319.00
$148.52 discount
Margin of Safety
-44.1%
Fair Value
$371.06
Current Price
$523.05
$151.99 premium
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
Every $100 of equity generates 78 in profit
Keeps 30 of every $100 in revenue as profit
Strong operational efficiency at 36.9%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
18.7% revenue growth
Areas to Watch
Trading at 9.4x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 26.3x book value
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 : UI
The strongest argument for UI centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 30.4% and operating margin at 36.9%. Revenue growth of 18.7% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 294.1x leaves little room for execution misses.
Bear Case : UI
The primary concerns for UI are P/E Ratio, Price/Book.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while UI is a growth play — different risk/reward profiles.
UI carries more volatility with a beta of 1.31 — expect wider price swings.
PANW is growing revenue faster at 31.1% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
UI scores higher overall (65/100 vs 47/100), backed by strong 30.4% margins and 18.7% revenue growth. PANW offers better value entry with a 32.8% 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.
Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
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