Palo Alto Networks Inc (PANW)vsSPS Commerce Inc (SPSC)
PANW
Palo Alto Networks Inc
$380.57
-3.86%
TECHNOLOGY · Cap: $279.76B
SPSC
SPS Commerce Inc
$82.99
-3.25%
TECHNOLOGY · Cap: $3.08B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 1386% more annual revenue ($11.48B vs $772.49M). SPSC leads profitability with a 10.1% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 2.01. PANW earns a higher WallStSmart Score of 49/100 (D+).
PANW
Hold49
out of 100
Grade: D+
SPSC
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.7%
Fair Value
$498.95
Current Price
$380.57
$118.38 discount
Margin of Safety
+70.8%
Fair Value
$235.04
Current Price
$82.99
$152.05 discount
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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Trading at 11.3x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 34.5% demonstrates continued momentum.
Bull Case : SPSC
The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score.
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 : SPSC
The primary concerns for SPSC are PEG Ratio, P/E Ratio, EPS Growth. A P/E of 41.8x leaves little room for execution misses.
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 0.93 — 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
PANW scores higher overall (49/100 vs 46/100) and 34.5% revenue growth. SPSC offers better value entry with a 70.8% 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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