Palo Alto Networks Inc (PANW)vsVaronis Systems (VRNS)
PANW
Palo Alto Networks Inc
$394.49
-3.53%
TECHNOLOGY · Cap: $279.76B
VRNS
Varonis Systems
$48.90
-0.43%
TECHNOLOGY · Cap: $5.60B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 1568% more annual revenue ($11.48B vs $688.10M). PANW leads profitability with a 2.7% profit margin vs -20.5%. PANW appears more attractively valued with a PEG of 2.01. PANW earns a higher WallStSmart Score of 49/100 (D+).
PANW
Hold49
out of 100
Grade: D+
VRNS
Avoid28
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.7%
Fair Value
$498.95
Current Price
$394.49
$104.46 discount
Margin of Safety
+65.4%
Fair Value
$76.00
Current Price
$48.90
$27.10 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.5% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
18.3% revenue growth
Areas to Watch
Expensive relative to growth rate
Trading at 11.7x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Trading at 12.6x book value
0.0% earnings growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.5% demonstrates continued momentum.
Bull Case : VRNS
The strongest argument for VRNS centers on Revenue Growth. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 855.0x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : VRNS
The primary concerns for VRNS are Price/Book, EPS Growth, Debt/Equity.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while VRNS is a growth play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.93 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
PANW scores higher overall (49/100 vs 28/100) and 34.5% revenue growth. VRNS offers better value entry with a 65.4% margin of safety. Both earn "Hold" and "Avoid" 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.
Varonis Systems
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Varonis Systems (VRNS) is a leading cybersecurity firm specializing in data security and analytics solutions that protect sensitive information across on-premises and cloud environments. Leveraging advanced machine learning and behavioral analytics, Varonis empowers organizations to proactively identify and mitigate data risks, while ensuring compliance with stringent regulatory standards. Serving a diverse range of industries, the company has solidified its reputation as a vital ally for enterprises addressing the challenges of data protection in an evolving threat landscape. As the need for comprehensive data security solutions escalates, Varonis is well-positioned for substantial growth in the expanding cybersecurity market.
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