WallStSmart

Palo Alto Networks Inc (PANW)vsStoneCo Ltd (STNE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

StoneCo Ltd generates 35% more annual revenue ($13.40B vs $9.89B). STNE leads profitability with a 17.3% profit margin vs 13.0%. STNE trades at a lower P/E of 7.1x. STNE earns a higher WallStSmart Score of 78/100 (B+).

PANW

Buy

58

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 2.0Quality: 5.0
Piotroski: 1/9Altman Z: 1.02

STNE

Strong Buy

78

out of 100

Grade: B+

Growth: 6.0Profit: 8.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PANWSignificantly Overvalued (-81.9%)

Margin of Safety

-81.9%

Fair Value

$84.24

Current Price

$153.22

$68.98 premium

UndervaluedFair: $84.24Overvalued
STNEUndervalued (+80.0%)

Margin of Safety

+80.0%

Fair Value

$88.45

Current Price

$14.36

$74.09 discount

UndervaluedFair: $88.45Overvalued

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
$128.28B9/10

Large-cap with strong market position

STNE5 strengths · Avg: 9.0/10
P/E RatioValuation
7.1x10/10

Attractively priced relative to earnings

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

EPS GrowthGrowth
46.1%8/10

Earnings expanding 46.1% YoY

Areas to Watch

PANW4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.962/10

Expensive relative to growth rate

P/E RatioValuation
87.3x2/10

Premium valuation, high expectations priced in

STNE0 concerns · Avg: 0/10

No major concerns identified

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 : STNE

The strongest argument for STNE centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 17.3% and operating margin at 46.3%. Revenue growth of 11.2% demonstrates continued momentum.

Bear Case : PANW

The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 87.3x leaves little room for execution misses.

Bear Case : STNE

No major red flags identified for STNE, but monitor valuation.

Key Dynamics to Monitor

PANW profiles as a value stock while STNE is a mature play — different risk/reward profiles.

STNE carries more volatility with a beta of 1.88 — expect wider price swings.

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

STNE generates stronger free cash flow (553M), providing more financial flexibility.

Bottom Line

STNE scores higher overall (78/100 vs 58/100), backed by strong 17.3% margins and 11.2% revenue growth. Both earn "Strong 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.

StoneCo Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.

Want to dig deeper into these stocks?