Palo Alto Networks Inc (PANW)vsSterling Construction Company Inc (STRL)
PANW
Palo Alto Networks Inc
$272.05
+2.00%
TECHNOLOGY · Cap: $231.90B
STRL
Sterling Construction Company Inc
$882.43
-11.20%
INDUSTRIALS · Cap: $26.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 268% more annual revenue ($10.61B vs $2.88B). STRL leads profitability with a 12.0% profit margin vs 8.0%. STRL appears more attractively valued with a PEG of 1.47. STRL earns a higher WallStSmart Score of 69/100 (B-).
PANW
Hold47
out of 100
Grade: D+
STRL
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+40.6%
Fair Value
$471.49
Current Price
$272.05
$199.44 discount
Intrinsic value data unavailable for STRL.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Revenue surging 91.6% year-over-year
Earnings expanding 141.4% YoY
Every $100 of equity generates 29 in profit
Conservative balance sheet, low leverage
Areas to Watch
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 24.4x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 31.1% demonstrates continued momentum.
Bull Case : STRL
The strongest argument for STRL centers on Revenue Growth, EPS Growth, Return on Equity. Revenue growth of 91.6% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bear Case : PANW
The primary concerns for PANW are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 247.4x leaves little room for execution misses.
Bear Case : STRL
The primary concerns for STRL are P/E Ratio, Price/Book. A P/E of 76.9x leaves little room for execution misses.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while STRL is a growth play — different risk/reward profiles.
STRL carries more volatility with a beta of 1.82 — expect wider price swings.
STRL is growing revenue faster at 91.6% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
STRL scores higher overall (69/100 vs 47/100) and 91.6% revenue growth. PANW offers better value entry with a 40.6% margin of safety. Both earn "Strong 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.
Sterling Construction Company Inc
INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA
Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.
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