WallStSmart

Palo Alto Networks Inc (PANW)vsPTC Inc (PTC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 230% more annual revenue ($9.89B vs $3.00B). PTC leads profitability with a 41.6% profit margin vs 13.0%. PTC appears more attractively valued with a PEG of 0.93. PTC earns a higher WallStSmart Score of 82/100 (A-).

PANW

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.02

PTC

Exceptional Buy

82

out of 100

Grade: A-

Growth: 8.7Profit: 9.5Value: 6.7Quality: 7.0
Piotroski: 6/9Altman Z: 2.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+39.7%)

Margin of Safety

+39.7%

Fair Value

$441.96

Current Price

$272.05

$169.91 discount

UndervaluedFair: $441.96Overvalued
PTCSignificantly Overvalued (-68.9%)

Margin of Safety

-68.9%

Fair Value

$92.13

Current Price

$137.00

$44.87 premium

UndervaluedFair: $92.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW3 strengths · Avg: 10.0/10
Market CapQuality
$241.01B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

PTC6 strengths · Avg: 9.7/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.3%10/10

Every $100 of equity generates 32 in profit

Profit MarginProfitability
41.6%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
41.6%10/10

Strong operational efficiency at 41.6%

EPS GrowthGrowth
268.9%10/10

Earnings expanding 268.9% YoY

PEG RatioValuation
0.938/10

Growing faster than its price suggests

Areas to Watch

PANW4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.0%3/10

ROE of 3.0% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.042/10

Expensive relative to growth rate

P/E RatioValuation
256.2x2/10

Premium valuation, high expectations priced in

PTC0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull 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 : PTC

The strongest argument for PTC centers on P/E Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 41.6% and operating margin at 41.6%. Revenue growth of 21.7% demonstrates continued momentum.

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 : PTC

No major red flags identified for PTC, but monitor valuation.

Key Dynamics to Monitor

PANW profiles as a value stock while PTC is a growth play — different risk/reward profiles.

PTC carries more volatility with a beta of 0.97 — expect wider price swings.

PTC is growing revenue faster at 21.7% — sustainability is the question.

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

Bottom Line

PTC scores higher overall (82/100 vs 57/100), backed by strong 41.6% margins and 21.7% revenue growth. PANW offers better value entry with a 39.7% margin of safety. Both earn "Exceptional 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.

PTC Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

PTC Inc. is an American computer software and services company founded in 1985 and headquartered in Boston, Massachusetts.

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