WallStSmart

NVE Corporation (NVEC)vsPalo Alto Networks Inc (PANW)

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Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 37235% more annual revenue ($11.48B vs $30.75M). NVEC leads profitability with a 58.2% profit margin vs 2.7%. NVEC appears more attractively valued with a PEG of 0.84. NVEC earns a higher WallStSmart Score of 56/100 (C).

NVEC

Buy

56

out of 100

Grade: C

Growth: 2.0Profit: 10.0Value: 6.0Quality: 8.5
Piotroski: 3/9Altman Z: 16.25

PANW

Hold

49

out of 100

Grade: D+

Growth: 9.3Profit: 4.5Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NVECOvervalued (-12.9%)

Margin of Safety

-12.9%

Fair Value

$59.90

Current Price

$82.37

$22.47 premium

UndervaluedFair: $59.90Overvalued
PANWUndervalued (+21.7%)

Margin of Safety

+21.7%

Fair Value

$498.95

Current Price

$394.49

$104.46 discount

UndervaluedFair: $498.95Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NVEC6 strengths · Avg: 9.7/10
Return on EquityProfitability
30.8%10/10

Every $100 of equity generates 31 in profit

Profit MarginProfitability
58.2%10/10

Keeps 58 of every $100 in revenue as profit

Operating MarginProfitability
54.9%10/10

Strong operational efficiency at 54.9%

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
16.2510/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.848/10

Growing faster than its price suggests

PANW5 strengths · Avg: 9.6/10
Market CapQuality
$279.76B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.5%10/10

Revenue surging 34.5% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.25B8/10

Generating 1.3B in free cash flow

Areas to Watch

NVEC4 concerns · Avg: 2.5/10
Market CapQuality
$351.87M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.1%2/10

Revenue declined 8.1%

EPS GrowthGrowth
-4.4%2/10

Earnings declined 4.4%

PANW4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : NVEC

The strongest argument for NVEC centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 58.2% and operating margin at 54.9%. PEG of 0.84 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 34.5% demonstrates continued momentum.

Bear Case : NVEC

The primary concerns for NVEC are Market Cap, Piotroski F-Score, Revenue Growth.

Bear Case : PANW

The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 855.0x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

NVEC profiles as a declining stock while PANW is a hypergrowth play — different risk/reward profiles.

NVEC carries more volatility with a beta of 1.29 — expect wider price swings.

PANW is growing revenue faster at 34.5% — sustainability is the question.

PANW generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

NVEC scores higher overall (56/100 vs 49/100), backed by strong 58.2% margins. PANW offers better value entry with a 21.7% margin of safety. 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.

NVE Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on the spin of the electron to acquire, store, and transmit information in the United States and internationally. The company is headquartered in Eden Prairie, Minnesota.

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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