WallStSmart

Palo Alto Networks Inc (PANW)vsSkywater Technology Inc (SKYT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 1727% more annual revenue ($9.89B vs $541.53M). SKYT leads profitability with a 21.0% profit margin vs 13.0%. SKYT trades at a lower P/E of 14.9x. SKYT earns a higher WallStSmart Score of 60/100 (C).

PANW

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.02

SKYT

Buy

60

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+39.7%)

Margin of Safety

+39.7%

Fair Value

$441.96

Current Price

$272.05

$169.91 discount

UndervaluedFair: $441.96Overvalued
SKYTSignificantly Overvalued (-24.6%)

Margin of Safety

-24.6%

Fair Value

$22.81

Current Price

$37.95

$15.14 premium

UndervaluedFair: $22.81Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW3 strengths · Avg: 10.0/10
Market CapQuality
$241.01B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

SKYT5 strengths · Avg: 9.4/10
Return on EquityProfitability
63.2%10/10

Every $100 of equity generates 63 in profit

Revenue GrowthGrowth
162.1%10/10

Revenue surging 162.1% year-over-year

EPS GrowthGrowth
9733.0%10/10

Earnings expanding 9733.0% YoY

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

Areas to Watch

PANW4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.0%3/10

ROE of 3.0% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.042/10

Expensive relative to growth rate

P/E RatioValuation
256.2x2/10

Premium valuation, high expectations priced in

SKYT4 concerns · Avg: 3.3/10
Price/BookValuation
10.3x4/10

Trading at 10.3x book value

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.323/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : PANW

The strongest argument for PANW centers on Market Cap, EPS Growth, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.

Bull Case : SKYT

The strongest argument for SKYT centers on Return on Equity, Revenue Growth, EPS Growth. Profitability is solid with margins at 21.0% and operating margin at -3.3%. Revenue growth of 162.1% demonstrates continued momentum.

Bear Case : PANW

The primary concerns for PANW are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 256.2x leaves little room for execution misses.

Bear Case : SKYT

The primary concerns for SKYT are Price/Book, Market Cap, Debt/Equity.

Key Dynamics to Monitor

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

SKYT carries more volatility with a beta of 3.32 — expect wider price swings.

SKYT is growing revenue faster at 162.1% — sustainability is the question.

PANW generates stronger free cash flow (788M), providing more financial flexibility.

Bottom Line

SKYT scores higher overall (60/100 vs 57/100), backed by strong 21.0% margins and 162.1% revenue growth. PANW offers better value entry with a 39.7% 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.

Skywater Technology Inc

TECHNOLOGY · SEMICONDUCTORS · USA

SkyWater Technology, Inc. manufactures integrated circuits. The company is headquartered in Bloomington, Minnesota.

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