Palo Alto Networks Inc (PANW)vsWestern Digital Corporation (WDC)
PANW
Palo Alto Networks Inc
$162.95
-4.00%
TECHNOLOGY · Cap: $132.97B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Western Digital Corporation generates 8% more annual revenue ($10.73B vs $9.89B). WDC leads profitability with a 35.6% profit margin vs 13.0%. WDC appears more attractively valued with a PEG of 0.69. PANW earns a higher WallStSmart Score of 56/100 (C).
PANW
Buy56
out of 100
Grade: C
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-101.3%
Fair Value
$80.96
Current Price
$162.95
$81.99 premium
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 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 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Trading at 12.2x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
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 : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 94.2x leaves little room for execution misses.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
PANW profiles as a value stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
PANW is growing revenue faster at 14.9% — sustainability is the question.
WDC generates stronger free cash flow (653M), providing more financial flexibility.
Bottom Line
PANW scores higher overall (56/100 vs 55/100) 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.
Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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