DigitalOcean Holdings Inc (DOCN)vsPalo Alto Networks Inc (PANW)
DOCN
DigitalOcean Holdings Inc
$87.00
+2.45%
TECHNOLOGY · Cap: $7.81B
PANW
Palo Alto Networks Inc
$153.22
-2.54%
TECHNOLOGY · Cap: $128.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 998% more annual revenue ($9.89B vs $901.43M). DOCN leads profitability with a 28.8% profit margin vs 13.0%. DOCN appears more attractively valued with a PEG of 1.54. PANW earns a higher WallStSmart Score of 58/100 (C).
DOCN
Buy56
out of 100
Grade: C
PANW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+47.1%
Fair Value
$117.94
Current Price
$87.00
$30.94 discount
Margin of Safety
-81.9%
Fair Value
$84.24
Current Price
$153.22
$68.98 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 90.1% YoY
Conservative balance sheet, low leverage
Keeps 29 of every $100 in revenue as profit
18.3% revenue growth
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of -38.7% — below average capital efficiency
Negative free cash flow — burning cash
Trading at 11.5x book value
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 EPS Growth, Debt/Equity, Profit Margin. Profitability is solid with margins at 28.8% and operating margin at 16.0%. Revenue growth of 18.3% demonstrates continued momentum.
Bull Case : PANW
The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.
Bear Case : DOCN
The primary concerns for DOCN are PEG Ratio, P/E Ratio, Return on Equity.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 87.3x 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 1.76 — expect wider price swings.
DOCN is growing revenue faster at 18.3% — sustainability is the question.
PANW generates stronger free cash flow (470M), providing more financial flexibility.
Bottom Line
PANW scores higher overall (58/100 vs 56/100) and 14.9% revenue growth. DOCN offers better value entry with a 47.1% 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.
Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?