Palo Alto Networks Inc (PANW)vsZoom Video Communications Inc (ZM)
PANW
Palo Alto Networks Inc
$394.49
-3.53%
TECHNOLOGY · Cap: $279.76B
ZM
Zoom Video Communications Inc
$100.26
+2.94%
TECHNOLOGY · Cap: $27.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 130% more annual revenue ($11.48B vs $4.99B). ZM leads profitability with a 65.2% profit margin vs 2.7%. PANW appears more attractively valued with a PEG of 2.01. ZM earns a higher WallStSmart Score of 71/100 (B).
PANW
Hold49
out of 100
Grade: D+
ZM
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.7%
Fair Value
$498.95
Current Price
$394.49
$104.46 discount
Intrinsic value data unavailable for ZM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Revenue surging 34.5% year-over-year
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Generating 1.3B in free cash flow
Attractively priced relative to earnings
Keeps 65 of every $100 in revenue as profit
Earnings expanding 342.3% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Areas to Watch
Expensive relative to growth rate
Trading at 11.7x book value
ROE of 1.1% — below average capital efficiency
2.7% margin — thin
4.9% revenue growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : PANW
The strongest argument for PANW centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 34.5% demonstrates continued momentum.
Bull Case : ZM
The strongest argument for ZM centers on P/E Ratio, Profit Margin, EPS Growth. Profitability is solid with margins at 65.2% and operating margin at 24.6%.
Bear Case : PANW
The primary concerns for PANW are PEG Ratio, Price/Book, Return on Equity. A P/E of 855.0x leaves little room for execution misses. Thin 2.7% margins leave little buffer for downturns.
Bear Case : ZM
The primary concerns for ZM are Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
PANW profiles as a hypergrowth stock while ZM is a value play — different risk/reward profiles.
ZM carries more volatility with a beta of 1.03 — expect wider price swings.
PANW is growing revenue faster at 34.5% — sustainability is the question.
PANW generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
ZM scores higher overall (71/100 vs 49/100), backed by strong 65.2% margins. PANW offers better value entry with a 21.7% margin of safety. Both earn "Strong Buy" and "Hold" 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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