Cisco Systems Inc (CSCO)vsPalo Alto Networks Inc (PANW)
CSCO
Cisco Systems Inc
$106.44
-4.50%
TECHNOLOGY · Cap: $442.08B
PANW
Palo Alto Networks Inc
$371.76
+0.76%
TECHNOLOGY · Cap: $270.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Cisco Systems Inc generates 452% more annual revenue ($63.33B vs $11.48B). CSCO leads profitability with a 20.9% profit margin vs 2.7%. CSCO appears more attractively valued with a PEG of 1.01. CSCO earns a higher WallStSmart Score of 75/100 (B).
CSCO
Strong Buy75
out of 100
Grade: B
PANW
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CSCO.
Margin of Safety
+27.4%
Fair Value
$500.75
Current Price
$371.76
$128.99 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 52.1% YoY
Every $100 of equity generates 26 in profit
Keeps 21 of every $100 in revenue as profit
Strong operational efficiency at 27.7%
17.6% revenue growth
Mega-cap, among the largest globally
Revenue surging 34.4% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 8.4x book value
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 11.0x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : CSCO
The strongest argument for CSCO centers on Market Cap, EPS Growth, Return on Equity. Profitability is solid with margins at 20.9% and operating margin at 27.7%. Revenue growth of 17.6% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.4% demonstrates continued momentum.
Bear Case : CSCO
The primary concerns for CSCO are P/E Ratio, Price/Book, Altman Z-Score.
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.
Key Dynamics to Monitor
CSCO profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.
CSCO carries more volatility with a beta of 0.99 — expect wider price swings.
PANW is growing revenue faster at 34.4% — sustainability is the question.
CSCO generates stronger free cash flow (5.0B), providing more financial flexibility.
Bottom Line
CSCO scores higher overall (75/100 vs 51/100), backed by strong 20.9% margins and 17.6% revenue growth. PANW offers better value entry with a 27.4% 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.
Cisco Systems Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. Cisco develops, manufactures and sells networking hardware, software, telecommunications equipment and other high-technology services and products. Through its numerous acquired subsidiaries, such as OpenDNS, Webex, Jabber and Jasper, Cisco specializes in specific tech markets, such as the Internet of Things (IoT), domain security and energy management. On January 25, 2021, Cisco reincorporated in Delaware.
Visit Website →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.
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