PANW vs PYPL: Which Is the Better Buy?
Side-by-side comparison of Palo Alto Networks, Inc. and PayPal Holdings, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-05.
Palo Alto Networks, Inc. · Technology
$174.41
+15.2% upside to fair value
Grade B
High Quality
VS
PayPal Holdings, Inc. · Financial Services
$50.39
+110.0% upside to fair value
Grade B
QuantHub Verdict
PYPL has more upside to fair value
(+110.0%).
PYPL trades at a lower forward P/E
(9.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
PANW |
PYPL |
| Current Price |
$174.41 |
$50.39 |
| Fair Value Estimate |
$200.93 |
$105.84 |
| Upside to Fair Value |
+15.2%
|
+110.0%
|
| Market Cap |
$118.9B |
$45.3B |
| Forward P/E |
94.6x
|
9.0x
|
| EV / EBITDA |
52.3x
|
6.1x
|
| Price / Sales |
12.0x
|
1.4x
|
| Price / FCF |
29.2x
|
8.2x
|
| Revenue Growth YoY |
+14.9%
|
+3.7%
|
| Gross Margin |
73.5%
|
46.6%
|
| Operating Margin |
14.4%
|
18.3%
|
| Return on Equity |
15.5%
|
25.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
3.42%
|
12.27%
|
| Analyst Consensus |
Strong Buy
|
Sell
|
Investment Thesis
Palo Alto Networks, Inc. is a leading global cybersecurity company specializing in AI-driven security platforms with a strong recurring revenue base exceeding 80% of total revenue. The company benefits from a high gross margin of 73.5% and solid profitability with a net margin of 13.0%, supported by accelerating revenue growth of 14.9% and earnings growth of 61.6% in the most recent quarter. Unde…
PayPal Holdings, Inc. operates as a leading digital payments platform offering transaction processing and value-added financial services such as consumer credit and BNPL products. The business quality is medium due to a narrowing competitive moat amid increasing pressure from big tech competitors and slowing growth in its core branded checkout segment. The stock is currently mispriced and cheap, …
Accumulation Zones
| Metric |
PANW |
PYPL |
| Zone Low |
$150.70 |
$79.38 |
| Zone High |
$170.79 |
$89.96 |
| In Buy Zone? |
No
|
Yes
|