Palo Alto Networks Inc (PANW)vsScanSource Inc (SCSC)
PANW
Palo Alto Networks Inc
$314.15
+3.67%
TECHNOLOGY · Cap: $273.25B
SCSC
ScanSource Inc
$57.38
+0.19%
TECHNOLOGY · Cap: $1.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 244% more annual revenue ($10.61B vs $3.09B). PANW leads profitability with a 8.0% profit margin vs 2.4%. SCSC appears more attractively valued with a PEG of 0.83. SCSC earns a higher WallStSmart Score of 58/100 (C).
PANW
Hold47
out of 100
Grade: D+
SCSC
Buy58
out of 100
Grade: C
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
+2.6%
Fair Value
$35.60
Current Price
$57.38
$21.78 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
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
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
Smaller company, higher risk/reward
2.4% margin — thin
Operating margin of 3.1%
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 : SCSC
The strongest argument for SCSC centers on Price/Book, Altman Z-Score, Debt/Equity. PEG of 0.83 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 : SCSC
The primary concerns for SCSC are Market Cap, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while SCSC is a value play — different risk/reward profiles.
SCSC carries more volatility with a beta of 1.28 — 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
SCSC scores higher overall (58/100 vs 47/100). PANW offers better value entry with a 32.8% 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.
ScanSource Inc
TECHNOLOGY · ELECTRONICS & COMPUTER DISTRIBUTION · USA
ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. The company is headquartered in Greenville, South Carolina.
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