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ARM vs PANW

ARM
Arm Holdings plc
NEUTRAL
Price
$115.75
Market Cap
$122.93B
Sector
Technology
AI Confidence
82%
PANW
Palo Alto Networks, Inc.
NEUTRAL
Price
$160.32
Market Cap
$130.82B
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
ARM
154.33
PANW
89.07
Forward P/E
ARM
54.1
PANW
40.36
P/B Ratio
ARM
15.76
PANW
12.0
P/S Ratio
ARM
26.32
PANW
13.22
EV/EBITDA
ARM
110.58
PANW
82.49

Profitability

Gross Margin
ARM
97.5%
PANW
73.5%
Operating Margin
ARM
15.38%
PANW
15.5%
Profit Margin
ARM
17.15%
PANW
12.96%
ROE
ARM
11.27%
PANW
16.26%
ROA
ARM
5.88%
PANW
3.45%

Growth

Revenue Growth
ARM
26.3%
PANW
14.9%
Earnings Growth
ARM
-12.3%
PANW
60.5%

Financial Health

Debt/Equity
ARM
0.06
PANW
0.05
Current Ratio
ARM
5.43
PANW
1.04
Quick Ratio
ARM
5.25
PANW
0.91

Dividends

Dividend Yield
ARM
--
PANW
--
Payout Ratio
ARM
0.0%
PANW
0.0%

AI Verdict

ARM NEUTRAL

ARM exhibits strong financial health with a Piotroski F-Score of 8/9, indicating robust operational efficiency and profitability, though the absence of an Altman Z-Score prevents definitive distress risk assessment. The stock trades at a premium valuation (P/E 154.33, Forward P/E 54.10) relative to its intrinsic value estimates ($5.25 intrinsic, $11.13 Graham), suggesting high growth expectations are priced in. Despite a recent earnings decline (YoY -12.3%), revenue growth remains strong at 26.3%, supported by consistent earnings surprises in the last four quarters. However, the lack of dividend, weak technical trend, and elevated valuation pose near-term risks. Analysts remain bullish with a buy consensus and target price above current levels.

Strengths
Piotroski F-Score of 8/9 indicates strong financial health and operational efficiency
High gross margin (97.50%) and solid operating margin (15.38%) reflect strong pricing power and cost control
Robust revenue growth of 26.3% YoY, outpacing sector average
Risks
Extremely high P/E ratio (154.33) and forward P/E (54.10) suggest overvaluation relative to current earnings
Negative year-over-year earnings growth (-12.3%) despite revenue growth, indicating margin pressure or one-time costs
No dividend and zero payout ratio limit income appeal for conservative investors
PANW NEUTRAL

PANW shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Low debt with D/E ratio of 0.05
Strong ROE of 16.3%
Risks
High valuation with P/E of 89.1
Premium vs Graham Number ($23.26)

Compare Another Pair

ARM vs PANW: Head-to-Head Comparison

This page compares Arm Holdings plc (ARM) and Palo Alto Networks, Inc. (PANW) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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