Palo Alto Networks Inc (PANW)vsSPS Commerce Inc (SPSC)
PANW
Palo Alto Networks Inc
$331.83
+1.89%
TECHNOLOGY · Cap: $273.25B
SPSC
SPS Commerce Inc
$73.39
+11.48%
TECHNOLOGY · Cap: $2.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 1273% more annual revenue ($10.61B vs $772.49M). SPSC leads profitability with a 10.1% profit margin vs 8.0%. PANW appears more attractively valued with a PEG of 3.79. SPSC earns a higher WallStSmart Score of 49/100 (D+).
PANW
Hold47
out of 100
Grade: D+
SPSC
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$467.52
Current Price
$331.83
$135.69 discount
Margin of Safety
+71.5%
Fair Value
$240.12
Current Price
$73.39
$166.73 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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Trading at 9.8x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 63.9%
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 : SPSC
The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score, Price/Book.
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 : SPSC
The primary concerns for SPSC are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while SPSC is a value play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.91 — 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
SPSC scores higher overall (49/100 vs 47/100). PANW offers better value entry with a 32.8% margin of safety. Both earn "Hold" 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.
SPS Commerce Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.
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