Palo Alto Networks Inc (PANW)vsSAP SE ADR (SAP)
PANW
Palo Alto Networks Inc
$363.86
+1.22%
TECHNOLOGY · Cap: $298.57B
SAP
SAP SE ADR
$206.16
+3.36%
TECHNOLOGY · Cap: $208.77B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 260% more annual revenue ($38.19B vs $10.61B). SAP leads profitability with a 20.4% profit margin vs 8.0%. SAP appears more attractively valued with a PEG of 1.63. SAP earns a higher WallStSmart Score of 64/100 (C+).
PANW
Hold47
out of 100
Grade: D+
SAP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.4%
Fair Value
$467.52
Current Price
$363.86
$103.66 discount
Margin of Safety
-30.4%
Fair Value
$150.68
Current Price
$206.16
$55.48 premium
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
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Strong operational efficiency at 27.6%
Earnings expanding 30.6% YoY
Generating 3.0B in free cash flow
Areas to Watch
Trading at 10.7x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
Trading at 65.9x book value
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 : SAP
The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 27.6%.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 318.6x leaves little room for execution misses.
Bear Case : SAP
The primary concerns for SAP are PEG Ratio, Price/Book.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while SAP is a mature play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.89 — expect wider price swings.
PANW is growing revenue faster at 31.1% — sustainability is the question.
SAP generates stronger free cash flow (3.0B), providing more financial flexibility.
Bottom Line
SAP scores higher overall (64/100 vs 47/100), backed by strong 20.4% margins. PANW offers better value entry with a 22.4% 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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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