WallStSmart

Palo Alto Networks Inc (PANW)vsRadware Ltd (RDWR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 3512% more annual revenue ($11.48B vs $317.81M). RDWR leads profitability with a 5.3% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.73. PANW earns a higher WallStSmart Score of 51/100 (C-).

PANW

Buy

51

out of 100

Grade: C-

Growth: 9.3Profit: 4.5Value: 5.3Quality: 4.8
Piotroski: 1/9

RDWR

Hold

38

out of 100

Grade: F

Growth: 4.0Profit: 4.0Value: 4.0Quality: 7.0
Piotroski: 4/9Altman Z: 1.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+34.1%)

Margin of Safety

+34.1%

Fair Value

$501.81

Current Price

$330.65

$171.16 discount

UndervaluedFair: $501.81Overvalued
RDWRUndervalued (+19.8%)

Margin of Safety

+19.8%

Fair Value

$34.55

Current Price

$27.90

$6.65 discount

UndervaluedFair: $34.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW4 strengths · Avg: 10.0/10
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

RDWR1 strengths · Avg: 10.0/10
Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Areas to Watch

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

Expensive relative to growth rate

Price/BookValuation
9.8x4/10

Trading at 9.8x 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

RDWR4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.954/10

Grey zone — moderate risk

Market CapQuality
$1.17B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

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 : RDWR

The strongest argument for RDWR centers on Debt/Equity. Revenue growth of 10.9% demonstrates continued momentum.

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 : RDWR

The primary concerns for RDWR are Altman Z-Score, Market Cap, Return on Equity. A P/E of 71.3x leaves little room for execution misses.

Key Dynamics to Monitor

PANW profiles as a hypergrowth stock while RDWR is a value play — different risk/reward profiles.

PANW carries more volatility with a beta of 0.91 — expect wider price swings.

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

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

Bottom Line

PANW scores higher overall (51/100 vs 38/100) and 34.4% revenue growth. RDWR offers better value entry with a 19.8% margin of safety. 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.

Radware Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Radware Ltd. develops, manufactures and markets cybersecurity and application delivery solutions for applications in physical, virtual, cloud and software-defined data centers globally. The company is headquartered in Tel Aviv, Israel.

Want to dig deeper into these stocks?