Palo Alto Networks Inc (PANW)vsStoneCo Ltd (STNE)
PANW
Palo Alto Networks Inc
$314.67
-0.26%
TECHNOLOGY · Cap: $299.44B
STNE
StoneCo Ltd
$7.49
-2.60%
TECHNOLOGY · Cap: $1.79B
Smart Verdict
WallStSmart Research — data-driven comparison
StoneCo Ltd generates 18% more annual revenue ($13.59B vs $11.48B). STNE leads profitability with a 24.7% profit margin vs 2.7%. STNE trades at a lower P/E of 3.0x. STNE earns a higher WallStSmart Score of 66/100 (B-).
PANW
Buy51
out of 100
Grade: C-
STNE
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$314.67
$184.01 discount
Margin of Safety
+79.2%
Fair Value
$85.05
Current Price
$7.49
$77.56 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
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 39.6%
Every $100 of equity generates 28 in profit
Keeps 25 of every $100 in revenue as profit
Generating 1.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 9.3x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
1.6% revenue growth
Smaller company, higher risk/reward
Elevated debt levels
Earnings declined 16.6%
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 : STNE
The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 24.7% and operating margin at 39.6%.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 914.7x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : STNE
The primary concerns for STNE are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.81 is elevated, increasing financial risk.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while STNE is a value play — different risk/reward profiles.
STNE carries more volatility with a beta of 1.54 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
STNE generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
STNE scores higher overall (66/100 vs 51/100), backed by strong 24.7% margins. PANW offers better value entry with a 26.6% margin of safety. 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.
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