Palo Alto Networks Inc (PANW)vsWaters Corporation (WAT)
PANW
Palo Alto Networks Inc
$207.88
+5.78%
TECHNOLOGY · Cap: $159.39B
WAT
Waters Corporation
$355.13
+1.32%
HEALTHCARE · Cap: $34.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 162% more annual revenue ($9.89B vs $3.77B). PANW leads profitability with a 13.0% profit margin vs 11.9%. WAT appears more attractively valued with a PEG of 1.52. PANW earns a higher WallStSmart Score of 56/100 (C).
PANW
Buy56
out of 100
Grade: C
WAT
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.7%
Fair Value
$454.04
Current Price
$207.88
$246.16 discount
Margin of Safety
-63.1%
Fair Value
$201.83
Current Price
$355.13
$153.30 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
Revenue surging 91.5% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 15.6x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 8.3x book value
ROE of 5.2% — below average capital efficiency
Premium valuation, high expectations priced in
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 : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.5% demonstrates continued momentum.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 109.2x leaves little room for execution misses.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 44.6x leaves little room for execution misses.
Key Dynamics to Monitor
PANW profiles as a value stock while WAT is a growth play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.14 — expect wider price swings.
WAT is growing revenue faster at 91.5% — sustainability is the question.
PANW generates stronger free cash flow (470M), providing more financial flexibility.
Bottom Line
PANW scores higher overall (56/100 vs 52/100) 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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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