Palo Alto Networks, Inc. (PANW) vs Block, Inc. (XYZ)

Palo Alto Networks, Inc. and Block, Inc. are both Software Infrastructure companies. Palo Alto Networks, Inc. is the larger, with a market value of $257.6B against $50.8B — 5.1× the size. Block, Inc. trades at the lower P/E: 112× against 597×. Palo Alto Networks, Inc. grew revenue faster over the last twelve months: 24.5% against 6.98%. Palo Alto Networks, Inc. has the higher net margin (2.67% vs 1.80%) and the lower return on invested capital (1.66% vs 3.58%). Across the 22 metrics below, Block, Inc. leads on 13 and Palo Alto Networks, Inc. on 9.

Valuation

Metric PANW XYZ Software Infrastructure median
P/E 596.98 111.61 24.43
P/S 20.64 1.98 2.81
P/B 8.62 2.22 2.88
Price to free cash flow 57.62 14.73 17.94
EV/EBITDA 109.14 135.86 14.51
EV/Sales 20.54 1.96 2.91
Earnings yield 0.17% 0.90% 0.00%
Free cash flow yield 1.74% 6.79% 0.49%

Profitability

Metric PANW XYZ Software Infrastructure median
Gross margin 70.36% 47.50% 57.45%
Operating margin 6.05% 4.64% 0.00%
Net margin 2.67% 1.80% 0.00%
Free cash flow margin 35.83% 13.47% 0.00%
Return on equity 1.74% 2.03% 0.00%
Return on assets 0.85% 1.15% 0.00%
Return on invested capital 1.66% 3.58% 0.00%

Growth

Metric PANW XYZ Software Infrastructure median
Revenue growth (TTM) 24.50% 6.98% 14.28%
EPS growth (last fiscal year) (75.00%) (53.95%) 18.26%
Revenue growth, 5-year CAGR 21.95% 20.56% 16.15%
Net income growth, 5-year CAGR 0.00% 43.70% 0.00%

Health

Metric PANW XYZ Software Infrastructure median
Debt to equity 0.06 0.25 0.02
Current ratio 0.87 2.23 1.53
Net debt to EBITDA (0.60) 0.22 0.05

Dividend

Metric PANW XYZ Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric PANW XYZ Software Infrastructure median
Market cap 257.64b 50.80b 661.51m

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