WallStSmart

Palo Alto Networks Inc (PANW)vsVeriSign Inc (VRSN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Palo Alto Networks Inc generates 497% more annual revenue ($9.89B vs $1.66B). VRSN leads profitability with a 49.8% profit margin vs 13.0%. VRSN appears more attractively valued with a PEG of 2.59. PANW earns a higher WallStSmart Score of 58/100 (C).

PANW

Buy

58

out of 100

Grade: C

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

VRSN

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 8.5Value: 6.0Quality: 4.3
Piotroski: 6/9Altman Z: -9.43
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
VRSNUndervalued (+4.6%)

Margin of Safety

+4.6%

Fair Value

$225.98

Current Price

$251.70

$25.72 discount

UndervaluedFair: $225.98Overvalued

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

VRSN2 strengths · Avg: 10.0/10
Profit MarginProfitability
49.8%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
67.0%10/10

Strong operational efficiency at 67.0%

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

VRSN4 concerns · Avg: 2.8/10
P/E RatioValuation
27.4x4/10

Moderate valuation

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

PEG RatioValuation
2.592/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-9.432/10

Distress zone — elevated risk

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 : VRSN

The strongest argument for VRSN centers on Profit Margin, Operating Margin. Profitability is solid with margins at 49.8% and operating margin at 67.0%.

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 : VRSN

The primary concerns for VRSN are P/E Ratio, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

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

PANW carries more volatility with a beta of 0.82 — expect wider price swings.

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

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

Bottom Line

PANW scores higher overall (58/100 vs 54/100) and 14.9% 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.

VeriSign Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Verisign Inc. is an American company based in Reston, Virginia, United States that operates a diverse array of network infrastructure, including two of the Internet's thirteen root nameservers. Verisign also offers a range of security services, including managed DNS, distributed denial-of-service (DDoS) attack mitigation and cyber-threat reporting.

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