Palo Alto Networks Inc (PANW)vsSemtech Corporation (SMTC)
PANW
Palo Alto Networks Inc
$351.72
-0.43%
TECHNOLOGY · Cap: $299.44B
SMTC
Semtech Corporation
$127.42
+4.12%
TECHNOLOGY · Cap: $13.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 878% more annual revenue ($11.48B vs $1.17B). SMTC leads profitability with a 13.1% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 1.87. SMTC earns a higher WallStSmart Score of 60/100 (C+).
PANW
Buy51
out of 100
Grade: C-
SMTC
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$351.72
$146.96 discount
Intrinsic value data unavailable for SMTC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.5% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Revenue surging 32.7% year-over-year
Every $100 of equity generates 21 in profit
Earnings expanding 22.7% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 10.4x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Trading at 15.9x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : SMTC
The strongest argument for SMTC centers on Revenue Growth, Return on Equity, EPS Growth. Revenue growth of 32.7% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 914.7x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : SMTC
The primary concerns for SMTC are Price/Book, PEG Ratio, P/E Ratio. A P/E of 97.3x leaves little room for execution misses.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while SMTC is a growth play — different risk/reward profiles.
SMTC carries more volatility with a beta of 2.42 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
SMTC scores higher overall (60/100 vs 51/100) and 32.7% revenue growth. PANW offers better value entry with a 26.6% 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.
Semtech Corporation
TECHNOLOGY · SEMICONDUCTORS · USA
Semtech Corporation designs, develops, manufactures, and markets mixed-signal and analog semiconductor products and advanced algorithms. The company is headquartered in Camarillo, California.
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