WallStSmart

Palo Alto Networks Inc (PANW)vsRapid7 Inc (RPD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 1051% more annual revenue ($9.89B vs $859.79M). PANW leads profitability with a 13.0% profit margin vs 2.7%. RPD appears more attractively valued with a PEG of 0.30. RPD 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

RPD

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 5.5Value: 10.0Quality: 5.0
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
RPDUndervalued (+56.2%)

Margin of Safety

+56.2%

Fair Value

$16.85

Current Price

$5.60

$11.25 discount

UndervaluedFair: $16.85Overvalued

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

RPD5 strengths · Avg: 8.6/10
PEG RatioValuation
0.3010/10

Growing faster than its price suggests

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

EPS GrowthGrowth
39.0%8/10

Earnings expanding 39.0% 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

RPD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.5%4/10

0.5% revenue growth

Market CapQuality
$415.79M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
1.0%3/10

Operating margin of 1.0%

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 : RPD

The strongest argument for RPD centers on PEG Ratio, Return on Equity, P/E Ratio. PEG of 0.30 suggests the stock is reasonably priced for its growth.

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 : RPD

The primary concerns for RPD are Revenue Growth, Market Cap, Profit Margin. Thin 2.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

RPD carries more volatility with a beta of 0.89 — 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

RPD scores higher overall (66/100 vs 58/100). 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.

Rapid7 Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Rapid7, Inc. provides cyber security solutions. The company is headquartered in Boston, Massachusetts.

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