WallStSmart

Enphase Energy Inc (ENPH)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 658% more annual revenue ($10.61B vs $1.40B). ENPH leads profitability with a 9.6% profit margin vs 8.0%. ENPH appears more attractively valued with a PEG of 1.13. PANW earns a higher WallStSmart Score of 47/100 (D+).

ENPH

Hold

42

out of 100

Grade: D

Growth: 2.0Profit: 4.5Value: 6.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.26

PANW

Hold

47

out of 100

Grade: D+

Growth: 9.3Profit: 3.5Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ENPHUndervalued (+19.5%)

Margin of Safety

+19.5%

Fair Value

$59.91

Current Price

$35.07

$24.84 discount

UndervaluedFair: $59.91Overvalued
PANWUndervalued (+32.8%)

Margin of Safety

+32.8%

Fair Value

$467.52

Current Price

$314.15

$153.37 discount

UndervaluedFair: $467.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ENPH0 strengths · Avg: 0/10

No standout strengths identified

PANW4 strengths · Avg: 10.0/10
Market CapQuality
$273.25B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
31.1%10/10

Revenue surging 31.1% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Areas to Watch

ENPH4 concerns · Avg: 2.0/10
P/E RatioValuation
41.1x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-20.6%2/10

Revenue declined 20.6%

EPS GrowthGrowth
-36.4%2/10

Earnings declined 36.4%

Altman Z-ScoreHealth
1.262/10

Distress zone — elevated risk

PANW4 concerns · Avg: 3.3/10
Price/BookValuation
9.2x4/10

Trading at 9.2x book value

Return on EquityProfitability
3.0%3/10

ROE of 3.0% — below average capital efficiency

Profit MarginProfitability
8.0%3/10

8.0% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ENPH

PEG of 1.13 suggests the stock is reasonably priced for its growth.

Bull Case : PANW

The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.

Bear Case : ENPH

The primary concerns for ENPH are P/E Ratio, Revenue Growth, EPS Growth. A P/E of 41.1x leaves little room for execution misses.

Bear Case : PANW

The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 294.1x leaves little room for execution misses.

Key Dynamics to Monitor

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

ENPH carries more volatility with a beta of 1.61 — expect wider price swings.

PANW is growing revenue faster at 31.1% — sustainability is the question.

PANW generates stronger free cash flow (788M), providing more financial flexibility.

Bottom Line

PANW scores higher overall (47/100 vs 42/100) and 31.1% revenue growth. ENPH offers better value entry with a 19.5% margin of safety. Both earn "Hold" 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.

Enphase Energy Inc

TECHNOLOGY · SOLAR · USA

Enphase Energy is an American energy technology company headquartered in Fremont, California. Enphase designs and manufactures software-driven home energy solutions that span solar generation, home energy storage and web-based monitoring and control.

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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