HON vs PANW: Which Is the Better Buy?
Side-by-side comparison of Honeywell International Inc. and Palo Alto Networks, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
Honeywell International Inc. · Industrials
$235.04
-9.9% upside to fair value
Med Conviction
Grade B
VS
Palo Alto Networks, Inc. · Technology
$174.96
+15.2% upside to fair value
Grade B
High Quality
QuantHub Verdict
PANW has more upside to fair value
(+15.2%).
HON trades at a lower forward P/E
(22.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HON |
PANW |
| Current Price |
$235.04 |
$174.96 |
| Fair Value Estimate |
$211.73 |
$201.61 |
| Upside to Fair Value |
-9.9%
|
+15.2%
|
| Market Cap |
$149.4B |
$119.2B |
| Forward P/E |
22.3x
|
94.9x
|
| EV / EBITDA |
16.9x
|
52.4x
|
| Price / Sales |
4.0x
|
12.1x
|
| Price / FCF |
27.7x
|
29.3x
|
| Revenue Growth YoY |
-2.7%
|
+14.9%
|
| Gross Margin |
36.9%
|
73.5%
|
| Operating Margin |
17.7%
|
14.4%
|
| Return on Equity |
33.28%
|
15.5%
|
| Dividend Yield |
1.92% |
0% |
| FCF Yield |
3.61%
|
3.41%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Honeywell is a diversified industrial conglomerate in the final stages of a transformative three-way separation into Honeywell Aerospace, Solstice Advanced Materials, and a retained Automation entity, targeting Q3 2026 completion. The business generated 33% ROE and $5.4B in free cash flow on $37.4B revenue in FY2025, supported by a record $37B backlog with 23% organic order growth in Q4. At $235 …
Palo Alto Networks is a leading cybersecurity company specializing in AI-driven cloud security platforms, subscription services, and hardware products. The company benefits from a durable competitive moat driven by its platform transformation under CEO Nikesh Arora, with over 50% of revenue from high-margin subscription services growing at 25.6% year-over-year in fiscal 2024. Despite a premium va…
Accumulation Zones
| Metric |
HON |
PANW |
| Zone Low |
$158.80 |
$151.21 |
| Zone High |
$179.97 |
$171.37 |
| In Buy Zone? |
No
|
No
|