Palo Alto Networks Inc (PANW)vsZscaler Inc (ZS)
PANW
Palo Alto Networks Inc
$314.67
-0.26%
TECHNOLOGY · Cap: $299.44B
ZS
Zscaler Inc
$197.66
-3.05%
TECHNOLOGY · Cap: $40.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 242% more annual revenue ($11.48B vs $3.35B). PANW leads profitability with a 2.7% profit margin vs -1.9%. PANW appears more attractively valued with a PEG of 1.87. PANW earns a higher WallStSmart Score of 51/100 (C-).
PANW
Buy51
out of 100
Grade: C-
ZS
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$314.67
$184.01 discount
Margin of Safety
+44.6%
Fair Value
$308.72
Current Price
$197.66
$111.06 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
Revenue surging 24.9% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 9.3x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Trading at 12.4x book value
0.0% earnings growth
Weak financial health signals
Expensive relative to growth rate
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 : ZS
The strongest argument for ZS centers on Revenue Growth. Revenue growth of 24.9% 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 : ZS
The primary concerns for ZS are Price/Book, EPS Growth, Piotroski F-Score.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while ZS is a growth play — different risk/reward profiles.
ZS carries more volatility with a beta of 0.94 — 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 (51/100 vs 32/100) and 34.5% revenue growth. ZS offers better value entry with a 44.6% margin of safety. Both earn "Buy" 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.
Zscaler Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
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