Palo Alto Networks Inc (PANW)vsVaronis Systems (VRNS)
PANW
Palo Alto Networks Inc
$314.15
+3.67%
TECHNOLOGY · Cap: $273.25B
VRNS
Varonis Systems
$39.93
-1.77%
TECHNOLOGY · Cap: $5.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 1506% more annual revenue ($10.61B vs $660.24M). PANW leads profitability with a 8.0% profit margin vs -19.8%. PANW appears more attractively valued with a PEG of 3.79. PANW earns a higher WallStSmart Score of 47/100 (D+).
PANW
Hold47
out of 100
Grade: D+
VRNS
Avoid30
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.8%
Fair Value
$467.52
Current Price
$314.15
$153.37 discount
Margin of Safety
+64.5%
Fair Value
$74.15
Current Price
$39.93
$34.22 discount
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
Revenue surging 26.9% year-over-year
Areas to Watch
Trading at 9.2x book value
ROE of 3.0% — below average capital efficiency
8.0% margin — thin
Weak financial health signals
Trading at 10.1x book value
0.0% earnings growth
Elevated debt levels
Weak financial health signals
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 : VRNS
The strongest argument for VRNS centers on Revenue Growth. Revenue growth of 26.9% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Return on Equity, Profit Margin. A P/E of 294.1x leaves little room for execution misses.
Bear Case : VRNS
The primary concerns for VRNS are Price/Book, EPS Growth, Debt/Equity.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while VRNS is a growth play — different risk/reward profiles.
PANW carries more volatility with a beta of 0.91 — expect wider price swings.
PANW is growing revenue faster at 31.1% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
PANW scores higher overall (47/100 vs 30/100) and 31.1% revenue growth. VRNS offers better value entry with a 64.5% margin of safety. Both earn "Hold" and "Avoid" 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.
Varonis Systems
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Varonis Systems (VRNS) is a leading cybersecurity firm specializing in data security and analytics solutions that protect sensitive information across on-premises and cloud environments. Leveraging advanced machine learning and behavioral analytics, Varonis empowers organizations to proactively identify and mitigate data risks, while ensuring compliance with stringent regulatory standards. Serving a diverse range of industries, the company has solidified its reputation as a vital ally for enterprises addressing the challenges of data protection in an evolving threat landscape. As the need for comprehensive data security solutions escalates, Varonis is well-positioned for substantial growth in the expanding cybersecurity market.
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