Palo Alto Networks Inc (PANW)vsRapid7 Inc (RPD)
PANW
Palo Alto Networks Inc
$334.47
-3.53%
TECHNOLOGY · Cap: $299.44B
RPD
Rapid7 Inc
$14.40
-2.57%
TECHNOLOGY · Cap: $1.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 1250% more annual revenue ($11.48B vs $850.37M). PANW leads profitability with a 2.7% profit margin vs 1.6%. RPD appears more attractively valued with a PEG of 0.77. PANW earns a higher WallStSmart Score of 51/100 (C-).
PANW
Buy51
out of 100
Grade: C-
RPD
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.0%
Fair Value
$497.80
Current Price
$334.47
$163.33 discount
Margin of Safety
+87.7%
Fair Value
$60.04
Current Price
$14.40
$45.64 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.5% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Trading at 9.9x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Smaller company, higher risk/reward
1.6% margin — thin
Operating margin of 3.1%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.5% demonstrates continued momentum.
Bull Case : RPD
The strongest argument for RPD centers on PEG Ratio. PEG of 0.77 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 914.7x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : RPD
The primary concerns for RPD are Market Cap, Profit Margin, Operating Margin. A P/E of 70.4x leaves little room for execution misses. Debt-to-equity of 4.34 is elevated, increasing financial risk.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while RPD is a value play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.93 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
PANW scores higher overall (51/100 vs 42/100) and 34.5% revenue growth. RPD offers better value entry with a 87.7% 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.
Rapid7 Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Rapid7, Inc. provides cyber security solutions. The company is headquartered in Boston, Massachusetts.
Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?