Palo Alto Networks Inc (PANW)vsTexas Instruments Incorporated (TXN)
PANW
Palo Alto Networks Inc
$153.22
-2.54%
TECHNOLOGY · Cap: $128.28B
TXN
Texas Instruments Incorporated
$196.77
+1.10%
TECHNOLOGY · Cap: $179.15B
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
Buy58
out of 100
Grade: C
TXN
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-81.9%
Fair Value
$84.24
Current Price
$153.22
$68.98 premium
Margin of Safety
-430.9%
Fair Value
$37.06
Current Price
$196.77
$159.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Every $100 of equity generates 30 in profit
Strong operational efficiency at 34.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Generating 1.3B in free cash flow
Areas to Watch
Trading at 11.5x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 11.0x book value
Earnings declined 3.2%
Comparative Analysis Report
WallStSmart ResearchBull 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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