Palo Alto Networks Inc (PANW)vsZoom Video Communications Inc (ZM)
PANW
Palo Alto Networks Inc
$272.05
+0.03%
TECHNOLOGY · Cap: $241.01B
ZM
Zoom Video Communications Inc
$101.62
-3.41%
TECHNOLOGY · Cap: $27.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 101% more annual revenue ($9.89B vs $4.93B). ZM leads profitability with a 42.0% profit margin vs 13.0%. ZM appears more attractively valued with a PEG of 4.21. ZM earns a higher WallStSmart Score of 70/100 (B-).
PANW
Buy57
out of 100
Grade: C
ZM
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+39.7%
Fair Value
$441.96
Current Price
$272.05
$169.91 discount
Intrinsic value data unavailable for ZM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Keeps 42 of every $100 in revenue as profit
Earnings expanding 74.2% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 21 in profit
Attractively priced relative to earnings
Areas to Watch
ROE of 3.0% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, EPS Growth, Debt/Equity. Revenue growth of 14.9% demonstrates continued momentum.
Bull Case : ZM
The strongest argument for ZM centers on Profit Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 42.0% and operating margin at 25.1%.
Bear Case : PANW
The primary concerns for PANW are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 256.2x leaves little room for execution misses.
Bear Case : ZM
The primary concerns for ZM are PEG Ratio.
Key Dynamics to Monitor
PANW profiles as a value stock while ZM is a mature play — different risk/reward profiles.
ZM carries more volatility with a beta of 0.99 — expect wider price swings.
PANW is growing revenue faster at 14.9% — sustainability is the question.
PANW generates stronger free cash flow (788M), providing more financial flexibility.
Bottom Line
ZM scores higher overall (70/100 vs 57/100), backed by strong 42.0% margins. PANW offers better value entry with a 39.7% margin of safety. Both earn "Strong 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.
Zoom Video Communications Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
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