WallStSmart

Palo Alto Networks Inc (PANW)vsTexas Instruments Incorporated (TXN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Texas Instruments Incorporated generates 79% more annual revenue ($17.68B vs $9.89B). TXN leads profitability with a 28.3% profit margin vs 13.0%. TXN appears more attractively valued with a PEG of 1.47. TXN earns a higher WallStSmart Score of 63/100 (C+).

PANW

Buy

58

out of 100

Grade: C

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

TXN

Buy

63

out of 100

Grade: C+

Growth: 3.3Profit: 9.5Value: 7.3Quality: 7.8
Piotroski: 5/9Altman Z: 4.12
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
TXNSignificantly Overvalued (-430.9%)

Margin of Safety

-430.9%

Fair Value

$37.06

Current Price

$196.77

$159.71 premium

UndervaluedFair: $37.06Overvalued

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

TXN6 strengths · Avg: 9.3/10
Return on EquityProfitability
30.1%10/10

Every $100 of equity generates 30 in profit

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

Altman Z-ScoreHealth
4.1210/10

Safe zone — low bankruptcy risk

Market CapQuality
$179.15B9/10

Large-cap with strong market position

Profit MarginProfitability
28.3%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.33B8/10

Generating 1.3B in free cash flow

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

TXN3 concerns · Avg: 3.3/10
P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.0x4/10

Trading at 11.0x book value

EPS GrowthGrowth
-3.2%2/10

Earnings declined 3.2%

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 : TXN

The strongest argument for TXN centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.3% and operating margin at 34.0%. Revenue growth of 10.4% demonstrates continued momentum.

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 : TXN

The primary concerns for TXN are P/E Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

PANW profiles as a value stock while TXN is a mature play — different risk/reward profiles.

TXN carries more volatility with a beta of 0.98 — expect wider price swings.

PANW is growing revenue faster at 14.9% — sustainability is the question.

TXN generates stronger free cash flow (1.3B), providing more financial flexibility.

Bottom Line

TXN scores higher overall (63/100 vs 58/100), backed by strong 28.3% margins and 10.4% revenue growth. Both earn "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.

Texas Instruments Incorporated

TECHNOLOGY · SEMICONDUCTORS · USA

Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.

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