WallStSmart

Alphabet Inc Class A (GOOGL)vsPalo Alto Networks Inc (PANW)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class A generates 4170% more annual revenue ($422.50B vs $9.89B). GOOGL leads profitability with a 37.9% profit margin vs 13.0%. GOOGL appears more attractively valued with a PEG of 1.57. GOOGL earns a higher WallStSmart Score of 74/100 (B).

GOOGL

Strong Buy

74

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 6.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.91

PANW

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 1/9Altman Z: 1.02
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GOOGLUndervalued (+38.7%)

Margin of Safety

+38.7%

Fair Value

$649.51

Current Price

$400.80

$248.71 discount

UndervaluedFair: $649.51Overvalued
PANWUndervalued (+56.7%)

Margin of Safety

+56.7%

Fair Value

$454.04

Current Price

$207.88

$246.16 discount

UndervaluedFair: $454.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GOOGL6 strengths · Avg: 10.0/10
Market CapQuality
$4.82T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 in profit

Profit MarginProfitability
37.9%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
36.1%10/10

Strong operational efficiency at 36.1%

EPS GrowthGrowth
82.0%10/10

Earnings expanding 82.0% YoY

Free Cash FlowQuality
$10.12B10/10

Generating 10.1B in free cash flow

PANW3 strengths · Avg: 9.7/10
EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Market CapQuality
$159.39B9/10

Large-cap with strong market position

Areas to Watch

GOOGL3 concerns · Avg: 4.0/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

P/E RatioValuation
30.4x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
15.6x4/10

Trading at 15.6x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.092/10

Expensive relative to growth rate

P/E RatioValuation
109.2x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : GOOGL

The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% 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 : GOOGL

The primary concerns for GOOGL are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : PANW

The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 109.2x leaves little room for execution misses.

Key Dynamics to Monitor

GOOGL profiles as a growth stock while PANW is a value play — different risk/reward profiles.

GOOGL carries more volatility with a beta of 1.27 — expect wider price swings.

GOOGL is growing revenue faster at 21.8% — sustainability is the question.

GOOGL generates stronger free cash flow (10.1B), providing more financial flexibility.

Bottom Line

GOOGL scores higher overall (74/100 vs 56/100), backed by strong 37.9% margins and 21.8% revenue growth. PANW offers better value entry with a 56.7% margin of safety. Both earn "Strong 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.

Alphabet Inc Class A

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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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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