DigitalOcean Holdings Inc (DOCN)vsPalo Alto Networks Inc (PANW)
DOCN
DigitalOcean Holdings Inc
$122.95
-6.18%
TECHNOLOGY · Cap: $15.51B
PANW
Palo Alto Networks Inc
$330.65
-2.32%
TECHNOLOGY · Cap: $270.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 1035% more annual revenue ($11.48B vs $1.01B). DOCN leads profitability with a 23.3% profit margin vs 2.7%. DOCN appears more attractively valued with a PEG of 1.54. DOCN earns a higher WallStSmart Score of 57/100 (C).
DOCN
Buy57
out of 100
Grade: C
PANW
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for DOCN.
Margin of Safety
+34.1%
Fair Value
$501.81
Current Price
$330.65
$171.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 25 in profit
Keeps 23 of every $100 in revenue as profit
Revenue surging 28.6% year-over-year
Mega-cap, among the largest globally
Revenue surging 34.4% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Trading at 13.9x book value
Elevated debt levels
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 9.8x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
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 23.3% and operating margin at 10.4%. Revenue growth of 28.6% 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 : DOCN
The primary concerns for DOCN are PEG Ratio, Price/Book, Debt/Equity. A P/E of 57.4x leaves little room for execution misses. Debt-to-equity of 1.61 is elevated, increasing financial risk.
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
DOCN profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.
DOCN carries more volatility with a beta of 1.57 — expect wider price swings.
PANW is growing revenue faster at 34.4% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
DOCN scores higher overall (57/100 vs 51/100), backed by strong 23.3% margins and 28.6% revenue growth. PANW offers better value entry with a 34.1% 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.
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