Palo Alto Networks Inc (PANW)vsRapid7 Inc (RPD)
PANW
Palo Alto Networks Inc
$314.15
+3.67%
TECHNOLOGY · Cap: $273.25B
RPD
Rapid7 Inc
$9.48
+0.96%
TECHNOLOGY · Cap: $798.63M
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 1134% more annual revenue ($10.61B vs $859.23M). PANW leads profitability with a 8.0% profit margin vs 2.6%. RPD appears more attractively valued with a PEG of 0.65. RPD earns a higher WallStSmart Score of 49/100 (D+).
PANW
Hold47
out of 100
Grade: D+
RPD
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$467.52
Current Price
$314.15
$153.37 discount
Margin of Safety
+88.5%
Fair Value
$64.44
Current Price
$9.48
$54.96 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Areas to Watch
Trading at 9.2x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
2.6% margin — thin
Operating margin of 0.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bull Case : RPD
The strongest argument for RPD centers on PEG Ratio. PEG of 0.65 suggests the stock is reasonably priced for its growth.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 294.1x leaves little room for execution misses.
Bear Case : RPD
The primary concerns for RPD are P/E Ratio, Market Cap, Profit Margin. Debt-to-equity of 5.52 is elevated, increasing financial risk. Thin 2.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while RPD is a value play — different risk/reward profiles.
RPD carries more volatility with a beta of 1.01 — expect wider price swings.
PANW is growing revenue faster at 31.1% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
RPD scores higher overall (49/100 vs 47/100). PANW offers better value entry with a 32.8% margin of safety. Both earn "Hold" 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.
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