WallStSmart

Onto Innovation Inc (ONTO)vsPalo Alto Networks Inc (PANW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 925% more annual revenue ($11.48B vs $1.12B). ONTO leads profitability with a 11.8% profit margin vs 2.7%. ONTO appears more attractively valued with a PEG of 0.76. ONTO earns a higher WallStSmart Score of 66/100 (B-).

ONTO

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 5.0Quality: 7.5
Piotroski: 2/9Altman Z: 6.34

PANW

Buy

51

out of 100

Grade: C-

Growth: 9.3Profit: 4.5Value: 5.3Quality: 4.8
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ONTO.

PANWUndervalued (+34.1%)

Margin of Safety

+34.1%

Fair Value

$501.81

Current Price

$330.65

$171.16 discount

UndervaluedFair: $501.81Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ONTO5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
35.3%10/10

Revenue surging 35.3% year-over-year

EPS GrowthGrowth
75.4%10/10

Earnings expanding 75.4% YoY

Altman Z-ScoreHealth
6.3410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.768/10

Growing faster than its price suggests

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

PANW4 strengths · Avg: 10.0/10
Market CapQuality
$270.47B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.4%10/10

Revenue surging 34.4% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Areas to Watch

ONTO3 concerns · Avg: 2.7/10
Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
104.9x2/10

Premium valuation, high expectations priced in

PANW4 concerns · Avg: 3.5/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
9.8x4/10

Trading at 9.8x 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 : ONTO

The strongest argument for ONTO centers on Revenue Growth, EPS Growth, Altman Z-Score. Revenue growth of 35.3% demonstrates continued momentum. PEG of 0.76 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 34.4% demonstrates continued momentum.

Bear Case : ONTO

The primary concerns for ONTO are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 104.9x leaves little room for execution misses.

Bear Case : PANW

The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 295.2x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

ONTO profiles as a growth stock while PANW is a hypergrowth play — different risk/reward profiles.

ONTO carries more volatility with a beta of 1.58 — expect wider price swings.

ONTO is growing revenue faster at 35.3% — sustainability is the question.

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

Bottom Line

ONTO scores higher overall (66/100 vs 51/100) and 35.3% revenue growth. PANW offers better value entry with a 34.1% 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.

Onto Innovation Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Onto Innovation Inc. is dedicated to the design, development, manufacture and support of process control tools that perform macrodefect inspection and metrology, lithography systems, and process control analytical software worldwide. The company is headquartered in Wilmington, Massachusetts.

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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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