Palo Alto Networks Inc (PANW)vsPaylocity Holding Corporation (PCTY)
PANW
Palo Alto Networks Inc
$330.65
-2.32%
TECHNOLOGY · Cap: $270.47B
PCTY
Paylocity Holding Corporation
$141.66
-0.84%
TECHNOLOGY · Cap: $7.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 548% more annual revenue ($11.48B vs $1.77B). PCTY leads profitability with a 15.2% profit margin vs 2.7%. PCTY appears more attractively valued with a PEG of 1.23. PCTY earns a higher WallStSmart Score of 65/100 (B-).
PANW
Buy51
out of 100
Grade: C-
PCTY
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+34.1%
Fair Value
$501.81
Current Price
$330.65
$171.16 discount
Margin of Safety
+62.0%
Fair Value
$283.03
Current Price
$141.66
$141.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.4% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Earnings expanding 27.6% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 9.8x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Moderate valuation
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.4% demonstrates continued momentum.
Bull Case : PCTY
The strongest argument for PCTY centers on Return on Equity, Debt/Equity, EPS Growth. Profitability is solid with margins at 15.2% and operating margin at 19.1%. Revenue growth of 11.0% demonstrates continued momentum.
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.
Bear Case : PCTY
The primary concerns for PCTY are P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while PCTY is a mature play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.91 — expect wider price swings.
PANW is growing revenue faster at 34.4% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
PCTY scores higher overall (65/100 vs 51/100), backed by strong 15.2% margins and 11.0% 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.
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.
Paylocity Holding Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.
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