Cloudflare Inc (NET)vsPalo Alto Networks Inc (PANW)
NET
Cloudflare Inc
$217.50
+6.11%
TECHNOLOGY · Cap: $72.43B
PANW
Palo Alto Networks Inc
$181.08
+1.92%
TECHNOLOGY · Cap: $145.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 356% more annual revenue ($9.89B vs $2.17B). PANW leads profitability with a 13.0% profit margin vs -4.7%. NET appears more attractively valued with a PEG of 2.38. PANW earns a higher WallStSmart Score of 56/100 (C).
NET
Hold35
out of 100
Grade: F
PANW
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-14.8%
Fair Value
$164.95
Current Price
$217.50
$52.55 premium
Margin of Safety
+60.3%
Fair Value
$455.52
Current Price
$181.08
$274.44 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.6% year-over-year
Large-cap with strong market position
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Trading at 52.4x book value
ROE of -8.2% — below average capital efficiency
Trading at 13.6x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : NET
The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.6% 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 : NET
The primary concerns for NET are PEG Ratio, EPS Growth, Price/Book.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 100.2x leaves little room for execution misses.
Key Dynamics to Monitor
NET profiles as a hypergrowth stock while PANW is a value play — different risk/reward profiles.
NET carries more volatility with a beta of 1.88 — expect wider price swings.
NET is growing revenue faster at 33.6% — sustainability is the question.
PANW generates stronger free cash flow (470M), providing more financial flexibility.
Bottom Line
PANW scores higher overall (56/100 vs 35/100) and 14.9% revenue growth. Both earn "Buy" 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.
Cloudflare Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
CloudFlare, Inc. operates a cloud platform that offers a range of network services to companies around the world. The company is headquartered in San Francisco, California.
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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