WallStSmart

Palo Alto Networks Inc (PANW)vsSTMicroelectronics NV ADR (STM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

STMicroelectronics NV ADR generates 25% more annual revenue ($12.38B vs $9.89B). PANW leads profitability with a 13.0% profit margin vs 1.2%. STM appears more attractively valued with a PEG of 0.71. PANW earns a higher WallStSmart Score of 57/100 (C).

PANW

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 1/9Altman Z: 1.02

STM

Hold

40

out of 100

Grade: D

Growth: 4.0Profit: 4.0Value: 5.0Quality: 7.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWUndervalued (+39.7%)

Margin of Safety

+39.7%

Fair Value

$441.96

Current Price

$272.05

$169.91 discount

UndervaluedFair: $441.96Overvalued

Intrinsic value data unavailable for STM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PANW3 strengths · Avg: 10.0/10
Market CapQuality
$241.01B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
60.5%10/10

Earnings expanding 60.5% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

STM4 strengths · Avg: 8.5/10
Market CapQuality
$70.67B9/10

Large-cap with strong market position

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

PANW4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.0%3/10

ROE of 3.0% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.042/10

Expensive relative to growth rate

P/E RatioValuation
256.2x2/10

Premium valuation, high expectations priced in

STM4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.8%3/10

ROE of 0.8% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

P/E RatioValuation
496.9x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : PANW

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

Bull Case : STM

The strongest argument for STM centers on Market Cap, Debt/Equity, PEG Ratio. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bear Case : PANW

The primary concerns for PANW are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 256.2x leaves little room for execution misses.

Bear Case : STM

The primary concerns for STM are Return on Equity, Profit Margin, Operating Margin. A P/E of 496.9x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

PANW profiles as a value stock while STM is a growth play — different risk/reward profiles.

STM carries more volatility with a beta of 1.51 — expect wider price swings.

STM is growing revenue faster at 23.0% — sustainability is the question.

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

Bottom Line

PANW scores higher overall (57/100 vs 40/100) and 14.9% revenue growth. Both earn "Buy" 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.

STMicroelectronics NV ADR

TECHNOLOGY · SEMICONDUCTORS · USA

STMicroelectronics NV designs, develops, manufactures and markets semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. The company is headquartered in Geneva, Switzerland.

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