WallStSmart

Palo Alto Networks Inc (PANW)vsPagerduty Inc (PD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 2220% more annual revenue ($11.48B vs $494.73M). PD leads profitability with a 37.5% profit margin vs 2.7%. PD trades at a lower P/E of 6.7x. PANW earns a higher WallStSmart Score of 51/100 (C-).

PANW

Buy

51

out of 100

Grade: C-

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

PD

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 7.5Value: 8.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+34.1%)

Margin of Safety

+34.1%

Fair Value

$501.81

Current Price

$330.65

$171.16 discount

UndervaluedFair: $501.81Overvalued
PDUndervalued (+81.2%)

Margin of Safety

+81.2%

Fair Value

$37.79

Current Price

$14.09

$23.70 discount

UndervaluedFair: $37.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PD3 strengths · Avg: 10.0/10
P/E RatioValuation
6.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
85.8%10/10

Every $100 of equity generates 86 in profit

Profit MarginProfitability
37.5%10/10

Keeps 38 of every $100 in revenue as profit

Areas to Watch

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

PD4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Market CapQuality
$1.07B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.783/10

Elevated debt levels

EPS GrowthGrowth
-40.0%2/10

Earnings declined 40.0%

Comparative Analysis Report

WallStSmart Research

Bull 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 : PD

The strongest argument for PD centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 37.5% and operating margin at 8.2%.

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 : PD

The primary concerns for PD are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.78 is elevated, increasing financial risk.

Key Dynamics to Monitor

PANW profiles as a hypergrowth stock while PD is a value play — different risk/reward profiles.

PD carries more volatility with a beta of 0.96 — 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

PANW scores higher overall (51/100 vs 48/100) and 34.4% revenue growth. PD offers better value entry with a 81.2% 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.

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.

Pagerduty Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

PagerDuty, Inc. operates a digital operations management platform in the United States and internationally. The company is headquartered in San Francisco, California.

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