WallStSmart

Palo Alto Networks Inc (PANW)vsCharles Schwab Corp (SCHW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Charles Schwab Corp generates 142% more annual revenue ($23.92B vs $9.89B). SCHW leads profitability with a 37.0% profit margin vs 13.0%. SCHW appears more attractively valued with a PEG of 1.12. SCHW earns a higher WallStSmart Score of 75/100 (B+).

PANW

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 2.0Quality: 5.0
Piotroski: 1/9Altman Z: 1.02

SCHW

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 10.0Quality: 8.3
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWSignificantly Overvalued (-94.2%)

Margin of Safety

-94.2%

Fair Value

$80.96

Current Price

$157.21

$76.25 premium

UndervaluedFair: $80.96Overvalued
SCHWUndervalued (+56.0%)

Margin of Safety

+56.0%

Fair Value

$217.62

Current Price

$95.68

$121.94 discount

UndervaluedFair: $217.62Overvalued

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
$132.97B9/10

Large-cap with strong market position

SCHW6 strengths · Avg: 9.2/10
Profit MarginProfitability
37.0%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
49.7%10/10

Strong operational efficiency at 49.7%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Market CapQuality
$169.34B9/10

Large-cap with strong market position

Revenue GrowthGrowth
18.9%8/10

18.9% revenue growth

EPS GrowthGrowth
41.1%8/10

Earnings expanding 41.1% YoY

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
11.8x4/10

Trading at 11.8x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.072/10

Expensive relative to growth rate

P/E RatioValuation
94.2x2/10

Premium valuation, high expectations priced in

SCHW1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-921.00M2/10

Negative free cash flow — burning cash

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 : SCHW

The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.

Bear Case : PANW

The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 94.2x leaves little room for execution misses.

Bear Case : SCHW

The primary concerns for SCHW are Free Cash Flow.

Key Dynamics to Monitor

PANW profiles as a value stock while SCHW is a growth play — different risk/reward profiles.

SCHW carries more volatility with a beta of 0.92 — expect wider price swings.

SCHW is growing revenue faster at 18.9% — sustainability is the question.

PANW generates stronger free cash flow (470M), providing more financial flexibility.

Bottom Line

SCHW scores higher overall (75/100 vs 56/100), backed by strong 37.0% margins and 18.9% revenue growth. 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.

Charles Schwab Corp

FINANCIAL SERVICES · CAPITAL MARKETS · USA

The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.

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