WallStSmart

Palo Alto Networks Inc (PANW)vsScience Applications International Corporation Common Stock (SAIC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 36% more annual revenue ($9.89B vs $7.26B). PANW leads profitability with a 13.0% profit margin vs 4.9%. PANW appears more attractively valued with a PEG of 3.05. PANW earns a higher WallStSmart Score of 56/100 (C).

PANW

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 1/9Altman Z: 1.02

SAIC

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 6.0Value: 6.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+60.8%)

Margin of Safety

+60.8%

Fair Value

$457.02

Current Price

$179.32

$277.70 discount

UndervaluedFair: $457.02Overvalued
SAICUndervalued (+73.5%)

Margin of Safety

+73.5%

Fair Value

$310.40

Current Price

$95.13

$215.27 discount

UndervaluedFair: $310.40Overvalued

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
$145.43B9/10

Large-cap with strong market position

SAIC4 strengths · Avg: 8.5/10
Return on EquityProfitability
23.3%9/10

Every $100 of equity generates 23 in profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
13.4x4/10

Trading at 13.4x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.052/10

Expensive relative to growth rate

P/E RatioValuation
100.2x2/10

Premium valuation, high expectations priced in

SAIC4 concerns · Avg: 2.3/10
Profit MarginProfitability
4.9%3/10

4.9% margin — thin

PEG RatioValuation
3.672/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.8%2/10

Revenue declined 4.8%

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

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 : SAIC

The strongest argument for SAIC centers on Return on Equity, Debt/Equity, P/E Ratio.

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 : SAIC

The primary concerns for SAIC are Profit Margin, PEG Ratio, Revenue Growth. Thin 4.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

PANW carries more volatility with a beta of 0.77 — 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 48/100) and 14.9% revenue growth. SAIC offers better value entry with a 73.5% 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.

Science Applications International Corporation Common Stock

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Science Applications International Corporation provides technical, engineering and business information technology (IT) services primarily in the United States. The company is headquartered in Reston, Virginia.

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