DigitalOcean Holdings Inc (DOCN)vsPalo Alto Networks Inc (PANW)
DOCN
DigitalOcean Holdings Inc
$180.58
-2.47%
TECHNOLOGY · Cap: $17.79B
PANW
Palo Alto Networks Inc
$272.05
+0.03%
TECHNOLOGY · Cap: $241.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 943% more annual revenue ($9.89B vs $948.63M). DOCN leads profitability with a 25.0% profit margin vs 13.0%. DOCN appears more attractively valued with a PEG of 1.54. PANW earns a higher WallStSmart Score of 57/100 (C).
DOCN
Buy57
out of 100
Grade: C
PANW
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for DOCN.
Margin of Safety
+39.7%
Fair Value
$441.96
Current Price
$272.05
$169.91 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 27 in profit
Keeps 25 of every $100 in revenue as profit
Revenue surging 22.4% year-over-year
Mega-cap, among the largest globally
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Premium valuation, high expectations priced in
Trading at 21.2x book value
ROE of 3.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : DOCN
The strongest argument for DOCN centers on Return on Equity, Profit Margin, Revenue Growth. Profitability is solid with margins at 25.0% and operating margin at 14.2%. Revenue growth of 22.4% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on Market Cap, EPS Growth, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.
Bear Case : DOCN
The primary concerns for DOCN are PEG Ratio, Debt/Equity, P/E Ratio. A P/E of 74.8x leaves little room for execution misses.
Bear Case : PANW
The primary concerns for PANW are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 256.2x leaves little room for execution misses.
Key Dynamics to Monitor
DOCN profiles as a growth stock while PANW is a value play — different risk/reward profiles.
DOCN carries more volatility with a beta of 1.57 — expect wider price swings.
DOCN is growing revenue faster at 22.4% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
DOCN scores higher overall (57/100 vs 57/100), backed by strong 25.0% margins and 22.4% revenue growth. PANW offers better value entry with a 39.7% margin of safety. Both earn "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.
DigitalOcean Holdings Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
DigitalOcean Holdings, Inc. operates a cloud computing platform that provides platform infrastructure and tools for developers, startups, and small and medium-sized businesses in North America, Europe, Asia, and internationally. The company is headquartered in New York, New York.
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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