Verdict: Side-by-side breakdown using the Bull Rankings model. ZS scored 36.0, PANW scored 49.3 — PANW leads.
Compare another set
ZS
Zscaler, Inc.
Software - Infrastructure · Quality-Growth
36
$233.73 · $38.1B
fundamentals as of
Score gap
13.3
PANW leads
PANW
Palo Alto Networks, Inc.
Software - Infrastructure · Quality-Growth
49.3
$418.78 · $342.6B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
CheapestZS11.4x
Fastest growthZS+25.4%
Strongest balance sheetPANW0.09
Highest qualityPANW44 / 100
Side by side · every name on one set of axes
Growth against the P/S multiple. Up and to the right is cheaper and faster — the quality-growth idea in one picture. Points beyond the axis are pinned to the edge and marked off-scale rather than allowed to compress everything else.
The model, pillar by pillar (0–100 each)
ZS
stronger →← stronger
PANW
36
Qualityreturns · margins · balance sheet
44
92
Growthrevenue & earnings expansion
91
14
Valuevaluation vs sector peers
30
PANW is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
ZS
PANW
$852mC+
FCF
$4.1bB
+25.4%A-
Rev
+24.5%A-
0.72C+
D/E
0.09B+
11.4xC
P/S
29.8xD
2.22C
PEG
2.03C
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
ZS
PANW
83% above
Price vs fair valuelower is cheaper
261% above
~31%/yr
Growth the price impliesyr-1 FCF growth, fading to 4% · lower = less priced in
~48%/yr
-58%
1-yr DCF upside
-78%
-45%
5-yr DCF upside
-72%
-19%
10-yr DCF upside
-61%
These two disagree on this pair: the Value pillar ranks cheapness against sector peers, while price-vs-fair-value is an absolute read. A name can be the better value in its sector and still the dearer one on cash flows.
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
ZS
Why this score
Diluting shareholders
PANW
Why this score
Diluting shareholders
The companies
ZSZscaler, Inc.
Software - Infrastructure · $233.73 · beta 0.94
Why now
Software - Infrastructure · market cap $38.1b. Down 31% from 52-week high of $336.99 — deep drawdown territory. Revenue growing +25% — in hypergrowth territory. 44 sell-side analysts rate this a Buy with a mean 1-yr target of $233.38 (implying -0% upside).
Moat
Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk
Currently unprofitable (margin -1.9%) — path to GAAP profitability is the core thesis risk. Down 31% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. P/S 11.4x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
PANWPalo Alto Networks, Inc.
Software - Infrastructure · $418.78 · beta 0.93
Why now
Software - Infrastructure · market cap $342.6b. 3% off the 52-week high of $432.33. Revenue growing +24%, comfortably above the S&P median. 50 sell-side analysts rate this a Buy with a mean 1-yr target of $396.92 (implying -5% upside).
Moat
Free cash flow runs well ahead of reported net income. $342.6b market cap places it among the largest companies in the sector — distribution, R&D, and customer-acquisition costs amortize across a base peers can't replicate. Software economics — recurring revenue, embedded customer workflows, and high gross margin all compound the moat once a base account is won. Switching costs are the lever.
Risk
P/S 29.8x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard. Net margin 2.7% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 1% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where ZS and PANW diverge
On the headline score the gap is 13.3 points in favor of PANW. The widest single difference is Value, where PANW leads by 15.7 points.
ValueZS 14.1 · PANW 29.8PANW +15.7
QualityZS 35.9 · PANW 44.0PANW +8.1
GrowthZS 91.9 · PANW 91.3level
Pillars run 0–100. Value is judged against each company's own sector, so a Value score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.
Common questions
Is PANW or ZS the better stock?
PANW scores higher: PANW 49.3, ZS 36.0 out of 100 on the Bull Rankings quality-growth score, which blends business quality, growth and valuation into one number. A higher score means a stronger business at a more reasonable price — it is not a price target or a recommendation.
Where do PANW and ZS differ most?
The widest gap is value, where PANW leads by 16 points on the 0–100 pillar scale. PANW also leads quality, while growth is effectively level between them.
How are PANW and ZS scored?
Each carries the same 0–100 quality-growth score used everywhere on the site, built from three pillars — quality (profitability and returns on capital), growth (revenue and earnings), and value (what you pay for them) — combined as a geometric mean, so a weak pillar cannot be papered over by a strong one.
How current is this comparison?
The whole universe is re-scored every trading day after the US market close, so the scores and fundamentals here reflect the latest published edition.