Palo Alto Networks Inc (PANW)vsPaycom Software, Inc. (PAYC)
PANW
Palo Alto Networks Inc
$272.05
+0.03%
TECHNOLOGY · Cap: $241.01B
PAYC
Paycom Software, Inc.
$137.62
+0.39%
TECHNOLOGY · Cap: $6.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 373% more annual revenue ($9.89B vs $2.09B). PAYC leads profitability with a 22.4% profit margin vs 13.0%. PAYC appears more attractively valued with a PEG of 0.97. PAYC earns a higher WallStSmart Score of 75/100 (B).
PANW
Buy57
out of 100
Grade: C
PAYC
Strong Buy75
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.7%
Fair Value
$441.96
Current Price
$272.05
$169.91 discount
Margin of Safety
+68.5%
Fair Value
$376.50
Current Price
$137.62
$238.88 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Every $100 of equity generates 58 in profit
Strong operational efficiency at 36.8%
Keeps 22 of every $100 in revenue as profit
Growing faster than its price suggests
Attractively priced relative to earnings
Earnings expanding 22.6% YoY
Areas to Watch
ROE of 3.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, EPS Growth, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.
Bull Case : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.4% and operating margin at 36.8%. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bear Case : PANW
The primary concerns for PANW are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 256.2x leaves little room for execution misses.
Bear Case : PAYC
The primary concerns for PAYC are Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
PANW profiles as a value stock while PAYC is a mature play — different risk/reward profiles.
PAYC carries more volatility with a beta of 0.79 — expect wider price swings.
PANW is growing revenue faster at 14.9% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (75/100 vs 57/100), backed by strong 22.4% margins. PANW offers better value entry with a 39.7% 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.
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.
Paycom Software, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.
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