Palo Alto Networks Inc (PANW)vsUbiquiti Networks Inc (UI)
PANW
Palo Alto Networks Inc
$330.65
+13.09%
TECHNOLOGY · Cap: $270.47B
UI
Ubiquiti Networks Inc
$553.55
-1.88%
TECHNOLOGY · Cap: $34.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 251% more annual revenue ($11.48B vs $3.27B). UI leads profitability with a 29.3% profit margin vs 2.7%. UI appears more attractively valued with a PEG of 1.10. UI earns a higher WallStSmart Score of 63/100 (C+).
PANW
Buy51
out of 100
Grade: C-
UI
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+34.1%
Fair Value
$501.81
Current Price
$330.65
$171.16 discount
Margin of Safety
-43.2%
Fair Value
$394.06
Current Price
$553.55
$159.49 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
Every $100 of equity generates 67 in profit
Strong operational efficiency at 36.3%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
Revenue surging 23.5% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 9.8x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Premium valuation, high expectations priced in
Weak financial health signals
Trading at 27.9x 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 34.4% demonstrates continued momentum.
Bull Case : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Debt/Equity. Profitability is solid with margins at 29.3% and operating margin at 36.3%. Revenue growth of 23.5% 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 : UI
The primary concerns for UI are P/E Ratio, Piotroski F-Score, 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 1.32 — expect wider price swings.
PANW is growing revenue faster at 34.4% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
UI scores higher overall (63/100 vs 51/100), backed by strong 29.3% margins and 23.5% 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.
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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