WallStSmart

Palo Alto Networks Inc (PANW)vsSprout Social Inc (SPT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 2062% more annual revenue ($9.89B vs $457.55M). PANW leads profitability with a 13.0% profit margin vs -9.5%. SPT appears more attractively valued with a PEG of 0.08. PANW earns a higher WallStSmart Score of 56/100 (C).

PANW

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 1/9Altman Z: 1.02

SPT

Buy

52

out of 100

Grade: C-

Growth: 6.7Profit: 2.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+60.8%)

Margin of Safety

+60.8%

Fair Value

$457.02

Current Price

$179.32

$277.70 discount

UndervaluedFair: $457.02Overvalued
SPTUndervalued (+82.4%)

Margin of Safety

+82.4%

Fair Value

$39.05

Current Price

$6.00

$33.05 discount

UndervaluedFair: $39.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW3 strengths · Avg: 9.7/10
EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0410/10

Conservative balance sheet, low leverage

Market CapQuality
$145.43B9/10

Large-cap with strong market position

SPT2 strengths · Avg: 9.0/10
PEG RatioValuation
0.0810/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
13.4x4/10

Trading at 13.4x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.052/10

Expensive relative to growth rate

P/E RatioValuation
100.2x2/10

Premium valuation, high expectations priced in

SPT4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$364.70M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-23.4%2/10

ROE of -23.4% — below average capital efficiency

Profit MarginProfitability
-9.5%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : PANW

The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.

Bull Case : SPT

The strongest argument for SPT centers on PEG Ratio, Price/Book. Revenue growth of 12.9% demonstrates continued momentum. PEG of 0.08 suggests the stock is reasonably priced for its growth.

Bear Case : PANW

The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 100.2x leaves little room for execution misses.

Bear Case : SPT

The primary concerns for SPT are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

PANW profiles as a value stock while SPT is a turnaround play — different risk/reward profiles.

SPT carries more volatility with a beta of 1.00 — expect wider price swings.

PANW is growing revenue faster at 14.9% — sustainability is the question.

PANW generates stronger free cash flow (470M), providing more financial flexibility.

Bottom Line

PANW scores higher overall (56/100 vs 52/100) and 14.9% revenue growth. SPT offers better value entry with a 82.4% 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.

Sprout Social Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Sprout Social, Inc. designs, develops, and operates a web-based social media management tool in the Americas, EMEA, and Asia Pacific. The company is headquartered in Chicago, Illinois.

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