Palo Alto Networks Inc (PANW)vsWestern Digital Corporation (WDC)
PANW
Palo Alto Networks Inc
$350.20
-0.62%
TECHNOLOGY · Cap: $299.44B
WDC
Western Digital Corporation
$323.83
-6.77%
TECHNOLOGY · Cap: $137.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Western Digital Corporation generates 26% more annual revenue ($14.48B vs $11.48B). WDC leads profitability with a 69.2% profit margin vs 2.7%. WDC appears more attractively valued with a PEG of 0.53. WDC earns a higher WallStSmart Score of 79/100 (B+).
PANW
Buy51
out of 100
Grade: C-
WDC
Strong Buy79
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$350.20
$148.48 discount
Intrinsic value data unavailable for WDC.
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
Every $100 of equity generates 106 in profit
Keeps 69 of every $100 in revenue as profit
Strong operational efficiency at 47.7%
Revenue surging 55.5% year-over-year
Earnings expanding 50.9% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 10.4x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Trading at 13.0x 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 34.5% demonstrates continued momentum.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 69.2% and operating margin at 47.7%. Revenue growth of 55.5% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 914.7x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : WDC
The primary concerns for WDC are Price/Book.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while WDC is a growth play — different risk/reward profiles.
WDC carries more volatility with a beta of 2.17 — expect wider price swings.
WDC is growing revenue faster at 55.5% — sustainability is the question.
WDC generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
WDC scores higher overall (79/100 vs 51/100), backed by strong 69.2% margins and 55.5% revenue growth. PANW offers better value entry with a 26.6% margin of safety. Both earn "Strong 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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