Palo Alto Networks Inc (PANW)vsTeradyne Inc (TER)
PANW
Palo Alto Networks Inc
$285.26
-1.94%
TECHNOLOGY · Cap: $231.90B
TER
Teradyne Inc
$406.86
+1.69%
TECHNOLOGY · Cap: $67.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 180% more annual revenue ($10.61B vs $3.79B). TER leads profitability with a 22.6% profit margin vs 8.0%. TER appears more attractively valued with a PEG of 1.71. TER earns a higher WallStSmart Score of 75/100 (B+).
PANW
Hold47
out of 100
Grade: D+
TER
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+38.8%
Fair Value
$470.35
Current Price
$285.26
$185.09 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 31.1% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Strong operational efficiency at 37.6%
Revenue surging 87.0% year-over-year
Earnings expanding 314.8% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Every $100 of equity generates 27 in profit
Areas to Watch
Trading at 8.4x book value
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 22.7x 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 : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 22.6% and operating margin at 37.6%. Revenue growth of 87.0% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 247.4x leaves little room for execution misses.
Bear Case : TER
The primary concerns for TER are PEG Ratio, P/E Ratio, Price/Book. A P/E of 79.9x leaves little room for execution misses.
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 1.79 — expect wider price swings.
TER is growing revenue faster at 87.0% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
TER scores higher overall (75/100 vs 47/100), backed by strong 22.6% margins and 87.0% revenue growth. PANW offers better value entry with a 38.8% 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.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
Visit Website →Compare with Other SOFTWARE - INFRASTRUCTURE Stocks
Want to dig deeper into these stocks?