WallStSmart

Dropbox Inc (DBX)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 353% more annual revenue ($11.48B vs $2.53B). DBX leads profitability with a 17.5% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.73. PANW earns a higher WallStSmart Score of 51/100 (C-).

DBX

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 9.0Value: 5.3Quality: 5.5
Piotroski: 5/9Altman Z: -0.43

PANW

Buy

51

out of 100

Grade: C-

Growth: 9.3Profit: 4.5Value: 4.7Quality: 4.8
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DBXUndervalued (+23.1%)

Margin of Safety

+23.1%

Fair Value

$31.76

Current Price

$33.90

$2.14 discount

UndervaluedFair: $31.76Overvalued
PANWUndervalued (+27.4%)

Margin of Safety

+27.4%

Fair Value

$500.75

Current Price

$371.76

$128.99 discount

UndervaluedFair: $500.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DBX2 strengths · Avg: 9.0/10
Debt/EquityHealth
-1.8210/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.1%8/10

Strong operational efficiency at 26.1%

PANW5 strengths · Avg: 9.6/10
Market CapQuality
$270.47B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.4%10/10

Revenue surging 34.4% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

Areas to Watch

DBX4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
0.9%4/10

0.9% revenue growth

PEG RatioValuation
28.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-6.7%2/10

Earnings declined 6.7%

Altman Z-ScoreHealth
-0.432/10

Distress zone — elevated risk

PANW4 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : DBX

The strongest argument for DBX centers on Debt/Equity, Operating Margin. Profitability is solid with margins at 17.5% and operating margin at 26.1%.

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 : DBX

The primary concerns for DBX are Revenue Growth, PEG Ratio, EPS Growth.

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

DBX profiles as a value stock while PANW is a hypergrowth play — different risk/reward profiles.

PANW carries more volatility with a beta of 0.91 — expect wider price swings.

PANW is growing revenue faster at 34.4% — 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 50/100) and 34.4% revenue growth. DBX offers better value entry with a 23.1% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Dropbox Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Dropbox, Inc. provides a worldwide collaboration platform. The company is headquartered in San Francisco, California.

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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