WallStSmart

Palo Alto Networks Inc (PANW)vsQualys Inc (QLYS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 1379% more annual revenue ($9.89B vs $669.13M). QLYS leads profitability with a 29.6% profit margin vs 13.0%. PANW appears more attractively valued with a PEG of 2.96. QLYS earns a higher WallStSmart Score of 66/100 (B-).

PANW

Buy

58

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 2.0Quality: 5.0
Piotroski: 1/9Altman Z: 1.02

QLYS

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 9.5Value: 7.3Quality: 5.3
Piotroski: 3/9Altman Z: 2.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWSignificantly Overvalued (-81.9%)

Margin of Safety

-81.9%

Fair Value

$84.24

Current Price

$153.22

$68.98 premium

UndervaluedFair: $84.24Overvalued
QLYSUndervalued (+54.5%)

Margin of Safety

+54.5%

Fair Value

$242.41

Current Price

$89.90

$152.51 discount

UndervaluedFair: $242.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW3 strengths · Avg: 9.7/10
EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Market CapQuality
$128.28B9/10

Large-cap with strong market position

QLYS5 strengths · Avg: 9.0/10
Return on EquityProfitability
38.2%10/10

Every $100 of equity generates 38 in profit

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Profit MarginProfitability
29.6%9/10

Keeps 30 of every $100 in revenue as profit

P/E RatioValuation
17.0x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
23.6%8/10

Earnings expanding 23.6% YoY

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.962/10

Expensive relative to growth rate

P/E RatioValuation
87.3x2/10

Premium valuation, high expectations priced in

QLYS2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.492/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PANW

The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.

Bull Case : QLYS

The strongest argument for QLYS centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 29.6% and operating margin at 33.6%. Revenue growth of 10.1% demonstrates continued momentum.

Bear Case : PANW

The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 87.3x leaves little room for execution misses.

Bear Case : QLYS

The primary concerns for QLYS are Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

PANW profiles as a value stock while QLYS is a mature play — different risk/reward profiles.

PANW carries more volatility with a beta of 0.82 — expect wider price swings.

PANW is growing revenue faster at 14.9% — sustainability is the question.

PANW generates stronger free cash flow (470M), providing more financial flexibility.

Bottom Line

QLYS scores higher overall (66/100 vs 58/100), backed by strong 29.6% margins and 10.1% revenue growth. 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.

Qualys Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Qualys, Inc. provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally. The company is headquartered in Foster City, California.

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