Palo Alto Networks Inc (PANW)vsZscaler Inc (ZS)
PANW
Palo Alto Networks Inc
$207.88
+5.78%
TECHNOLOGY · Cap: $159.39B
ZS
Zscaler Inc
$152.13
-0.43%
TECHNOLOGY · Cap: $24.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Palo Alto Networks Inc generates 230% more annual revenue ($9.89B vs $3.00B). PANW leads profitability with a 13.0% profit margin vs -2.3%. ZS 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
ZS
Avoid34
out of 100
Grade: F
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
+47.3%
Fair Value
$324.31
Current Price
$152.13
$172.18 discount
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 25.9% year-over-year
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 11.1x book value
0.0% earnings growth
Weak financial health signals
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 : ZS
The strongest argument for ZS centers on Revenue Growth. Revenue growth of 25.9% 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 : ZS
The primary concerns for ZS are PEG Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
PANW profiles as a value stock while ZS is a growth play — different risk/reward profiles.
ZS carries more volatility with a beta of 0.96 — expect wider price swings.
ZS is growing revenue faster at 25.9% — sustainability is the question.
PANW generates stronger free cash flow (470M), providing more financial flexibility.
Bottom Line
PANW scores higher overall (56/100 vs 34/100) and 14.9% revenue growth. ZS offers better value entry with a 47.3% margin of safety. Both earn "Buy" and "Avoid" 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.
Zscaler Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
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