WallStSmart

NetApp Inc (NTAP)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 47% more annual revenue ($9.89B vs $6.71B). NTAP leads profitability with a 18.1% profit margin vs 13.0%. NTAP appears more attractively valued with a PEG of 1.15. NTAP earns a higher WallStSmart Score of 66/100 (B-).

NTAP

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 9.0Value: 10.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.24

PANW

Buy

58

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 2.0Quality: 5.0
Piotroski: 1/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NTAPUndervalued (+45.2%)

Margin of Safety

+45.2%

Fair Value

$193.10

Current Price

$105.50

$87.60 discount

UndervaluedFair: $193.10Overvalued
PANWSignificantly Overvalued (-81.9%)

Margin of Safety

-81.9%

Fair Value

$84.24

Current Price

$153.22

$68.98 premium

UndervaluedFair: $84.24Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NTAP3 strengths · Avg: 8.7/10
Return on EquityProfitability
112.6%10/10

Every $100 of equity generates 113 in profit

P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

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
$128.28B9/10

Large-cap with strong market position

Areas to Watch

NTAP4 concerns · Avg: 2.8/10
Price/BookValuation
18.0x4/10

Trading at 18.0x book value

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Altman Z-ScoreHealth
1.242/10

Distress zone — elevated risk

Debt/EquityHealth
2.781/10

Elevated debt levels

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.962/10

Expensive relative to growth rate

P/E RatioValuation
87.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : NTAP

The strongest argument for NTAP centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.1% and operating margin at 25.2%. PEG of 1.15 suggests the stock is reasonably priced for its growth.

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 : NTAP

The primary concerns for NTAP are Price/Book, Revenue Growth, Altman Z-Score. Debt-to-equity of 2.78 is elevated, increasing financial risk.

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

NTAP carries more volatility with a beta of 1.35 — expect wider price swings.

PANW is growing revenue faster at 14.9% — sustainability is the question.

PANW generates stronger free cash flow (470M), providing more financial flexibility.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NTAP scores higher overall (66/100 vs 58/100), backed by strong 18.1% margins. 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.

NetApp Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

NetApp, Inc. is an American hybrid cloud data services and data management company headquartered in Sunnyvale, California. Founded in 1992 with an IPO in 1995, NetApp offers cloud data services for management of applications and data both online and physically.

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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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