Palo Alto Networks Inc (PANW)vsTeradyne Inc (TER)
PANW
Palo Alto Networks Inc
$314.67
-0.26%
TECHNOLOGY · Cap: $299.44B
TER
Teradyne Inc
$212.74
+2.57%
TECHNOLOGY · Cap: $42.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 130% more annual revenue ($11.48B vs $5.00B). TER leads profitability with a 27.5% profit margin vs 2.7%. TER appears more attractively valued with a PEG of 0.46. TER earns a higher WallStSmart Score of 79/100 (B+).
PANW
Buy51
out of 100
Grade: C-
TER
Strong Buy79
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
Intrinsic value data unavailable for TER.
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
Growing faster than its price suggests
Every $100 of equity generates 33 in profit
Strong operational efficiency at 30.9%
Revenue surging 69.8% year-over-year
Earnings expanding 189.3% YoY
Conservative balance sheet, low leverage
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
Premium valuation, high expectations priced in
Trading at 9.0x book value
Weak financial health signals
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 : TER
The strongest argument for TER centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 27.5% and operating margin at 30.9%. Revenue growth of 69.8% demonstrates continued momentum.
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 : TER
The primary concerns for TER are P/E Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while TER is a growth play — different risk/reward profiles.
TER carries more volatility with a beta of 1.75 — expect wider price swings.
TER is growing revenue faster at 69.8% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
TER scores higher overall (79/100 vs 51/100), backed by strong 27.5% margins and 69.8% revenue growth. 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.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
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