WallStSmart

Palo Alto Networks Inc (PANW)vsSoundHound AI Inc (SOUN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 5665% more annual revenue ($10.61B vs $183.99M). PANW leads profitability with a 8.0% profit margin vs -91.8%. PANW earns a higher WallStSmart Score of 47/100 (D+).

PANW

Hold

47

out of 100

Grade: D+

Growth: 9.3Profit: 3.5Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.02

SOUN

Avoid

27

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 5.3Quality: 7.0
Piotroski: 4/9Altman Z: -0.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+40.6%)

Margin of Safety

+40.6%

Fair Value

$471.49

Current Price

$272.05

$199.44 discount

UndervaluedFair: $471.49Overvalued
SOUNUndervalued (+7.4%)

Margin of Safety

+7.4%

Fair Value

$8.60

Current Price

$7.39

$1.21 discount

UndervaluedFair: $8.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW4 strengths · Avg: 10.0/10
Market CapQuality
$231.90B10/10

Mega-cap, among the largest globally

Revenue GrowthGrowth
31.1%10/10

Revenue surging 31.1% year-over-year

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

SOUN2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
51.7%10/10

Revenue surging 51.7% year-over-year

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Return on EquityProfitability
3.0%3/10

ROE of 3.0% — below average capital efficiency

Profit MarginProfitability
8.0%3/10

8.0% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
4.562/10

Expensive relative to growth rate

SOUN4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-36.7%2/10

ROE of -36.7% — below average capital efficiency

Free Cash FlowQuality
$-26.73M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.052/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : SOUN

The strongest argument for SOUN centers on Revenue Growth, Debt/Equity. Revenue growth of 51.7% demonstrates continued momentum.

Bear Case : PANW

The primary concerns for PANW are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 247.4x leaves little room for execution misses.

Bear Case : SOUN

The primary concerns for SOUN are EPS Growth, Return on Equity, Free Cash Flow.

Key Dynamics to Monitor

SOUN carries more volatility with a beta of 2.73 — expect wider price swings.

SOUN is growing revenue faster at 51.7% — sustainability is the question.

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

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PANW scores higher overall (47/100 vs 27/100) and 31.1% revenue growth. Both earn "Hold" and "Avoid" 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.

SoundHound AI Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SoundHound AI, Inc. develops an independent voice artificial intelligence (AI) platform that enables businesses in all industries to deliver high-quality conversational experiences to their customers. The company is headquartered in Santa Clara, California.

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