Palo Alto Networks Inc (PANW)vsQ2 Holdings (QTWO)
PANW
Palo Alto Networks Inc
$179.32
-1.22%
TECHNOLOGY · Cap: $145.43B
QTWO
Q2 Holdings
$52.51
+4.69%
TECHNOLOGY · Cap: $3.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 1145% more annual revenue ($9.89B vs $794.81M). PANW leads profitability with a 13.0% profit margin vs 6.5%. PANW appears more attractively valued with a PEG of 3.05. PANW earns a higher WallStSmart Score of 56/100 (C).
PANW
Buy56
out of 100
Grade: C
QTWO
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.8%
Fair Value
$457.02
Current Price
$179.32
$277.70 discount
Margin of Safety
+4.0%
Fair Value
$58.97
Current Price
$52.51
$6.46 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Earnings expanding 10802.0% YoY
Areas to Watch
Trading at 13.4x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
6.5% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : QTWO
The strongest argument for QTWO centers on EPS Growth. Revenue growth of 13.8% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 100.2x leaves little room for execution misses.
Bear Case : QTWO
The primary concerns for QTWO are Profit Margin, PEG Ratio, P/E Ratio. A P/E of 65.6x leaves little room for execution misses.
Key Dynamics to Monitor
QTWO carries more volatility with a beta of 1.42 — 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.
Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PANW scores higher overall (56/100 vs 50/100) and 14.9% revenue growth. 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.
Q2 Holdings
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Q2 Holdings, Inc. provides cloud-based digital banking solutions to Community and Regional Financial Institutions (RCFIs) in the United States. The company is headquartered in Austin, Texas.
Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?