WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 1345% more annual revenue ($9.89B vs $684.86M). QLYS leads profitability with a 29.4% profit margin vs 13.0%. QLYS appears more attractively valued with a PEG of 4.37. QLYS earns a higher WallStSmart Score of 62/100 (C+).

PANW

Buy

57

out of 100

Grade: C

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

QLYS

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 9.5Value: 4.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.98
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

Intrinsic value data unavailable for QLYS.

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

QLYS4 strengths · Avg: 9.8/10
Return on EquityProfitability
35.4%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
35.0%10/10

Strong operational efficiency at 35.0%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

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

QLYS2 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

PEG RatioValuation
4.372/10

Expensive relative to growth rate

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 : QLYS

The strongest argument for QLYS centers on Return on Equity, Operating Margin, Debt/Equity. Profitability is solid with margins at 29.4% and operating margin at 35.0%.

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 : QLYS

The primary concerns for QLYS are Altman Z-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 0.77 — expect wider price swings.

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

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

Bottom Line

QLYS scores higher overall (62/100 vs 57/100), backed by strong 29.4% margins. PANW offers better value entry with a 39.7% 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.

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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