Palo Alto Networks Inc (PANW)vsTexas Instruments Incorporated (TXN)
PANW
Palo Alto Networks Inc
$365.87
-3.86%
TECHNOLOGY · Cap: $299.44B
TXN
Texas Instruments Incorporated
$300.84
-3.38%
TECHNOLOGY · Cap: $275.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Texas Instruments Incorporated generates 81% more annual revenue ($20.77B vs $11.48B). TXN leads profitability with a 34.3% profit margin vs 2.7%. TXN appears more attractively valued with a PEG of 0.91. TXN earns a higher WallStSmart Score of 78/100 (B+).
PANW
Buy51
out of 100
Grade: C-
TXN
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+26.6%
Fair Value
$498.68
Current Price
$365.87
$132.81 discount
Intrinsic value data unavailable for TXN.
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
Mega-cap, among the largest globally
Every $100 of equity generates 37 in profit
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 47.5%
Earnings expanding 77.0% YoY
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Trading at 10.8x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
Premium valuation, high expectations priced in
Trading at 14.3x 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 34.5% demonstrates continued momentum.
Bull Case : TXN
The strongest argument for TXN centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 34.3% and operating margin at 47.5%. Revenue growth of 27.7% 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 : TXN
The primary concerns for TXN are P/E Ratio, Price/Book.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while TXN is a growth play — different risk/reward profiles.
TXN carries more volatility with a beta of 1.34 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
TXN generates stronger free cash flow (3.0B), providing more financial flexibility.
Bottom Line
TXN scores higher overall (78/100 vs 51/100), backed by strong 34.3% margins and 27.7% 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.
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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