WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 1697% more annual revenue ($11.48B vs $638.84M). SKYT leads profitability with a 18.4% profit margin vs 2.7%. SKYT trades at a lower P/E of 13.9x. SKYT earns a higher WallStSmart Score of 59/100 (C).

PANW

Hold

49

out of 100

Grade: D+

Growth: 9.3Profit: 4.5Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.11

SKYT

Buy

59

out of 100

Grade: C

Growth: 10.0Profit: 6.5Value: 5.7Quality: 5.0
Piotroski: 3/9Altman Z: 1.07
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+21.7%)

Margin of Safety

+21.7%

Fair Value

$498.95

Current Price

$394.49

$104.46 discount

UndervaluedFair: $498.95Overvalued
SKYTOvervalued (-5.5%)

Margin of Safety

-5.5%

Fair Value

$26.93

Current Price

$32.46

$5.53 premium

UndervaluedFair: $26.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW5 strengths · Avg: 9.6/10
Market CapQuality
$279.76B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
34.5%10/10

Revenue surging 34.5% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.25B8/10

Generating 1.3B in free cash flow

SKYT5 strengths · Avg: 9.6/10
Return on EquityProfitability
63.2%10/10

Every $100 of equity generates 63 in profit

Revenue GrowthGrowth
164.8%10/10

Revenue surging 164.8% year-over-year

EPS GrowthGrowth
9733.0%10/10

Earnings expanding 9733.0% YoY

Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

Areas to Watch

PANW4 concerns · Avg: 3.5/10
PEG RatioValuation
2.014/10

Expensive relative to growth rate

Price/BookValuation
11.7x4/10

Trading at 11.7x book value

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

SKYT4 concerns · Avg: 3.3/10
Price/BookValuation
8.8x4/10

Trading at 8.8x book value

Market CapQuality
$1.60B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
1.2%3/10

Operating margin of 1.2%

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, Revenue Growth, EPS Growth. Revenue growth of 34.5% 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 18.4% and operating margin at 1.2%. Revenue growth of 164.8% demonstrates continued momentum.

Bear Case : PANW

The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 855.0x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.

Bear Case : SKYT

The primary concerns for SKYT are Price/Book, Market Cap, Operating Margin.

Key Dynamics to Monitor

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

SKYT carries more volatility with a beta of 3.27 — expect wider price swings.

SKYT is growing revenue faster at 164.8% — sustainability is the question.

PANW generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

SKYT scores higher overall (59/100 vs 49/100), backed by strong 18.4% margins and 164.8% revenue growth. PANW offers better value entry with a 21.7% 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.

Skywater Technology Inc

TECHNOLOGY · SEMICONDUCTORS · USA

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

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