Critical Contrast: Palo Alto Networks (PANW) and Its Peers
Palo Alto Networks (NYSE: PANW) is one of 196 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its rivals? We will compare Palo Alto Networks to related businesses based on the strength of its risk, dividends, earnings, valuation, institutional ownership, analyst recommendations and profitability.
Risk and Volatility
Palo Alto Networks has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Palo Alto Networks’ rivals have a beta of 1.27, meaning that their average stock price is 27% more volatile than the S&P 500.
Earnings & Valuation
This table compares Palo Alto Networks and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Palo Alto Networks||$1.76 billion||-$99.10 million||-61.07|
|Palo Alto Networks Competitors||$2.12 billion||$367.56 million||16.58|
Palo Alto Networks’ rivals have higher revenue and earnings than Palo Alto Networks. Palo Alto Networks is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
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||-12.57%||-19.72%||-4.89%|
|Palo Alto Networks Competitors||-20.60%||-51.86%||-4.16%|
Insider and Institutional Ownership
77.0% of Palo Alto Networks shares are held by institutional investors. Comparatively, 60.9% of shares of all “IT Services & Consulting” companies are held by institutional investors. 4.8% of Palo Alto Networks shares are held by company insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Palo Alto Networks and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Palo Alto Networks||1||11||29||0||2.68|
|Palo Alto Networks Competitors||683||4457||7464||169||2.56|
Palo Alto Networks currently has a consensus target price of $161.18, indicating a potential upside of 7.74%. As a group, “IT Services & Consulting” companies have a potential downside of 1.45%. Given Palo Alto Networks’ stronger consensus rating and higher probable upside, research analysts clearly believe Palo Alto Networks is more favorable than its rivals.
About Palo Alto Networks
Palo Alto Networks, Inc. offers a next-generation security platform. The Company’s security platform consists of three elements: Next-Generation Firewall, Advanced Endpoint Protection and Threat Intelligence Cloud. Its Next-Generation Firewall delivers application, user and content visibility and control, as well as protection against network-based cyber threats integrated within the firewall through its hardware and software architecture. Its Advanced Endpoint Protection prevents cyber attacks that run malicious code or exploit software vulnerabilities on a range of fixed and virtual endpoints and servers. Its Threat Intelligence Cloud provides central intelligence capabilities, security for software as a service applications and automated delivery of preventative measures against cyber attacks. Its products and services include firewall appliances, panorama, virtual system upgrades, subscription services, support and maintenance, and professional services.
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