Palo Alto Networks Inc (PANW)vsZoom Video Communications Inc (ZM)
PANW
Palo Alto Networks Inc
$179.32
-1.22%
TECHNOLOGY · Cap: $145.43B
ZM
Zoom Video Communications Inc
$95.76
+5.07%
TECHNOLOGY · Cap: $28.22B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 103% more annual revenue ($9.89B vs $4.87B). ZM leads profitability with a 39.0% profit margin vs 13.0%. PANW appears more attractively valued with a PEG of 3.05. ZM earns a higher WallStSmart Score of 70/100 (B-).
PANW
Buy56
out of 100
Grade: C
ZM
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+60.8%
Fair Value
$457.02
Current Price
$179.32
$277.70 discount
Margin of Safety
-8.7%
Fair Value
$84.76
Current Price
$95.76
$11.00 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
Keeps 39 of every $100 in revenue as profit
Earnings expanding 91.5% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 20 in profit
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 13.4x book value
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 EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% demonstrates continued momentum.
Bull Case : ZM
The strongest argument for ZM centers on Profit Margin, EPS Growth, Altman Z-Score. Profitability is solid with margins at 39.0% and operating margin at 21.5%.
Bear Case : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 100.2x 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 0.88 — 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
ZM scores higher overall (70/100 vs 56/100), backed by strong 39.0% margins. PANW offers better value entry with a 60.8% 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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