WallStSmart

Palo Alto Networks Inc (PANW)vsQnity Electronics, Inc (Q)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 120% more annual revenue ($11.48B vs $5.21B). Q leads profitability with a 11.3% profit margin vs 2.7%. Q appears more attractively valued with a PEG of 1.30. Q earns a higher WallStSmart Score of 57/100 (C).

PANW

Buy

51

out of 100

Grade: C-

Growth: 9.3Profit: 4.5Value: 4.7Quality: 4.8
Piotroski: 1/9

Q

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 5.0Quality: 5.5
Piotroski: 2/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+27.4%)

Margin of Safety

+27.4%

Fair Value

$500.75

Current Price

$371.76

$128.99 discount

UndervaluedFair: $500.75Overvalued

Intrinsic value data unavailable for Q.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW5 strengths · Avg: 9.6/10
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

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

Q2 strengths · Avg: 8.0/10
Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Areas to Watch

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

Expensive relative to growth rate

Price/BookValuation
11.0x4/10

Trading at 11.0x 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

Q4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
44.0x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-34.3%2/10

Earnings declined 34.3%

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

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 : Q

The strongest argument for Q centers on Operating Margin, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 1.30 suggests the stock is reasonably priced for its growth.

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 : Q

The primary concerns for Q are Piotroski F-Score, P/E Ratio, EPS Growth. A P/E of 44.0x leaves little room for execution misses.

Key Dynamics to Monitor

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

PANW is growing revenue faster at 34.4% — sustainability is the question.

PANW generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

Q scores higher overall (57/100 vs 51/100) and 22.1% revenue growth. PANW offers better value entry with a 27.4% margin of safety. Both earn "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.

Qnity Electronics, Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.

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