Palo Alto Networks (PANW) and Its Rivals Head-To-Head Analysis

Palo Alto Networks (NASDAQ:PANW) is one of 959 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Palo Alto Networks to similar companies based on the strength of its dividends, institutional ownership, risk, earnings, analyst recommendations, profitability and valuation.

Valuation and Earnings

This table compares Palo Alto Networks and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Palo Alto Networks	$11.48 billion	$307.00 million	632.67
Palo Alto Networks Competitors	$1.79 billion	$382.68 million	112.19

Palo Alto Networks has higher revenue, but lower earnings than its rivals. Palo Alto Networks is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Palo Alto Networks has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Palo Alto Networks’ rivals have a beta of 1.35, meaning that their average stock price is 35% more volatile than the S&P 500.

Institutional and Insider Ownership

79.8% of Palo Alto Networks shares are owned by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are owned by institutional investors. 0.6% of Palo Alto Networks shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Palo Alto Networks and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Palo Alto Networks	0	11	40	0	2.78
Palo Alto Networks Competitors	5840	21622	45013	1501	2.57

Palo Alto Networks presently has a consensus price target of $397.12, indicating a potential upside of 23.08%. As a group, “Software” companies have a potential upside of 28.45%. Given Palo Alto Networks’ rivals higher probable upside, analysts clearly believe Palo Alto Networks has less favorable growth aspects than its rivals.

Profitability

This table compares Palo Alto Networks and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Palo Alto Networks	2.67%	8.50%	4.35%
Palo Alto Networks Competitors	-599.60%	26.31%	-8.93%

Summary

Palo Alto Networks beats its rivals on 7 of the 13 factors compared.

About Palo Alto Networks

Palo Alto Networks, Inc. is a cybersecurity company that provides products and services to help organizations protect their networks, cloud environments, devices and applications. Its offerings include next-generation firewalls, cloud security tools, secure access services and platforms for detecting and responding to cyber threats. The company’s product portfolio includes Prisma for cloud and network security and Cortex for security operations, including threat detection and response. It also provides cybersecurity consulting and incident-response services through Unit 42.