Palo Alto Networks Inc (PANW)vsSAP SE ADR (SAP)
PANW
Palo Alto Networks Inc
$374.57
+0.76%
TECHNOLOGY · Cap: $270.47B
SAP
SAP SE ADR
$210.68
+0.70%
TECHNOLOGY · Cap: $241.75B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 233% more annual revenue ($38.19B vs $11.48B). SAP leads profitability with a 20.4% profit margin vs 2.7%. SAP appears more attractively valued with a PEG of 1.60. SAP earns a higher WallStSmart Score of 64/100 (C+).
PANW
Buy51
out of 100
Grade: C-
SAP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+27.4%
Fair Value
$500.75
Current Price
$374.57
$126.18 discount
Margin of Safety
-29.9%
Fair Value
$151.18
Current Price
$210.68
$59.50 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.4% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Keeps 20 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Strong operational efficiency at 27.6%
Earnings expanding 30.6% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 11.1x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Expensive relative to growth rate
Moderate valuation
Trading at 66.3x 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 34.4% 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 PEG Ratio, Price/Book, Return on Equity. A P/E of 295.2x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : SAP
The primary concerns for SAP are PEG Ratio, P/E 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 0.91 — expect wider price swings.
PANW is growing revenue faster at 34.4% — 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 51/100), backed by strong 20.4% margins. PANW offers better value entry with a 27.4% margin of safety. Both earn "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.
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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