Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly changing and fiercely competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies. In this article, we will conduct a comprehensive industry comparison, evaluating Palo Alto Networks (NASDAQ:PANW) against its key competitors in the Software industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Palo Alto Networks Background Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 85,000 customers across the world, including more than three fourths of the Global 2000.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Palo Alto Networks Inc | 44.35 | 21.24 | 13.38 | 53.52% | $0.21 | $1.48 | 19.33% |
| Microsoft Corp | 36.99 | 12.76 | 13.42 | 9.53% | $33.39 | $42.4 | 17.58% |
| Oracle Corp | 31.64 | 81.44 | 6.22 | 80.28% | $5.16 | $9.2 | 5.43% |
| ServiceNow Inc | 91.22 | 20.64 | 17.60 | 3.98% | $0.51 | $1.92 | 25.62% |
| CrowdStrike Holdings Inc | 891.03 | 34.61 | 26.29 | 1.38% | $0.08 | $0.59 | 35.31% |
| Gen Digital Inc | 9.90 | 5.77 | 3.72 | 5.96% | $0.47 | $0.77 | 1.6% |
| Dolby Laboratories Inc | 42.89 | 3.35 | 6.29 | 2.85% | $0.09 | $0.28 | -5.78% |
| Qualys Inc | 41.66 | 16.86 | 11.39 | 11.75% | $0.05 | $0.12 | 10.49% |
| Teradata Corp | 62.97 | 27.71 | 2.15 | -5.45% | $0.06 | $0.28 | 1.11% |
| N-able Inc | 101.54 | 3.43 | 5.82 | 1.35% | $0.03 | $0.09 | 13.22% |
| Progress Software Corp | 34.34 | 5.15 | 3.47 | 3.39% | $0.05 | $0.14 | 12.63% |
| Average | 134.42 | 21.17 | 9.64 | 11.5% | $3.99 | $5.58 | 11.72% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } After examining Palo Alto Networks, the following trends can be inferred:
- At 44.35, the stock's Price to Earnings ratio is 0.33x less than the industry average, suggesting favorable growth potential.
- It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 21.24 which exceeds the industry average by 1.0x.
- The Price to Sales ratio of 13.38, which is 1.39x the industry average, suggests the stock could potentially be overvalued in relation to its sales performance compared to its peers.
- With a Return on Equity (ROE) of 53.52% that is 42.02% above the industry average, it appears that the company exhibits efficient use of equity to generate profits.
- The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $210 Million, which is 0.05x below the industry average. This potentially indicates lower profitability or financial challenges.
- With lower gross profit of $1.48 Billion, which indicates 0.27x below the industry average, the company may experience lower revenue after accounting for production costs.
- With a revenue growth of 19.33%, which surpasses the industry average of 11.72%, the company is demonstrating robust sales expansion and gaining market share.
The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
By evaluating Palo Alto Networks against its top 4 peers in terms of the Debt-to-Equity ratio, the following observations arise:
- Palo Alto Networks exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated by its lower debt-to-equity ratio of 0.5.
- This suggests that the company has a more favorable balance between debt and equity, which can be seen as a positive aspect for investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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