WallStSmart

Palo Alto Networks Inc (PANW)vsToast Inc (TOST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 61% more annual revenue ($9.89B vs $6.15B). PANW leads profitability with a 13.0% profit margin vs 5.6%. TOST appears more attractively valued with a PEG of 0.24. TOST earns a higher WallStSmart Score of 65/100 (B-).

PANW

Buy

58

out of 100

Grade: C

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

TOST

Strong Buy

65

out of 100

Grade: B-

Growth: 7.3Profit: 6.0Value: 8.0Quality: 7.3
Piotroski: 4/9Altman Z: 3.54
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
TOSTOvervalued (-6.9%)

Margin of Safety

-6.9%

Fair Value

$26.21

Current Price

$26.81

$0.60 premium

UndervaluedFair: $26.21Overvalued

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

TOST3 strengths · Avg: 9.3/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.5410/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
22.0%8/10

Revenue surging 22.0% year-over-year

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

TOST3 concerns · Avg: 3.0/10
EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

Profit MarginProfitability
5.6%3/10

5.6% margin — thin

P/E RatioValuation
47.5x2/10

Premium valuation, high expectations priced in

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 : TOST

The strongest argument for TOST centers on PEG Ratio, Altman Z-Score, Revenue Growth. Revenue growth of 22.0% demonstrates continued momentum. PEG of 0.24 suggests the stock is reasonably priced for its growth.

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 : TOST

The primary concerns for TOST are EPS Growth, Profit Margin, P/E Ratio. A P/E of 47.5x leaves little room for execution misses.

Key Dynamics to Monitor

PANW profiles as a value stock while TOST is a growth play — different risk/reward profiles.

TOST carries more volatility with a beta of 1.95 — expect wider price swings.

TOST is growing revenue faster at 22.0% — sustainability is the question.

PANW generates stronger free cash flow (470M), providing more financial flexibility.

Bottom Line

TOST scores higher overall (65/100 vs 58/100) and 22.0% 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.

Toast Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland. The company is headquartered in Boston, Massachusetts.

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