CHKP
Check Point Software Technologies Ltd.
Software - Infrastructure
Market Cap$12.26B
5Y Perf.+7.3%
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Stock Comparison
CHKP vs PANW
Revenue, margins, valuation, and 5-year total return — side by side.
PANW
Palo Alto Networks, Inc.
Software - Infrastructure
Market Cap$129.34B
5Y Perf.+369.2%
CHKP vs PANW — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | CHKP | PANW |
|---|---|---|
| Industry | Software - Infrastructure | Software - Infrastructure |
| Market Cap | $12.26B | $129.34B |
| Revenue (TTM) | $2.76B | $9.89B |
| Net Income (TTM) | $1.06B | $1.28B |
| Gross Margin | 85.0% | 73.5% |
| Operating Margin | 29.8% | 14.4% |
| Forward P/E | 11.3x | 49.9x |
| Total Debt | $1.97B | $338M |
| Cash & Equiv. | $1.80B | $2.27B |
CHKP vs PANW — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
CHKP
PANW
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Check Point Softwar… (CHKP) | 100 | 107.3 | +7.3% |
| Palo Alto Networks,… (PANW) | 100 | 469.2 | +369.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CHKP vs PANW
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: CHKP leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Palo Alto Networks, Inc. is the stronger pick specifically for growth and revenue expansion and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
CHKP
Check Point Software Technologies Ltd.
The Income Pick
CHKP carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- beta 0.36
- Lower volatility, beta 0.36, Low D/E 68.4%, current ratio 2.05x
- Beta 0.36, current ratio 2.05x
Best for: income & stability and sleep-well-at-night
PANW
Palo Alto Networks, Inc.
The Growth Play
PANW is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 14.9%, EPS growth -56.0%, 3Y rev CAGR 18.8%
- 6.8% 10Y total return vs CHKP's 43.7%
- 14.9% revenue growth vs CHKP's 6.3%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PANW | 14.9% revenue growth vs CHKP's 6.3% |
| Value | CHKP | Lower P/E (11.3x vs 49.9x) |
| Quality / Margins | CHKP | 38.4% margin vs PANW's 13.0% |
| Stability / Safety | CHKP | Beta 0.36 vs PANW's 1.02 |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | PANW | -2.2% vs CHKP's -46.6% |
| Efficiency (ROA) | CHKP | 15.8% ROA vs PANW's 5.1%, ROIC 23.2% vs 17.1% |
CHKP vs PANW — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
CHKP vs PANW — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCHKPLAGGINGPANW
PANWPalo Alto Networks, I…
1leads
CHKPCheck Point Software …
3leads
6 Total Categories
CATEGORYLEADERvs PANWMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CHKP4/6
Valuation MetricsMultiples, price ratios, and targets
CHKP6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CHKP5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
PANW6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
CHKP leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
PANW is the larger business by revenue, generating $9.9B annually — 3.6x CHKP's $2.8B. CHKP is the more profitable business, keeping 38.4% of every revenue dollar as net income compared to PANW's 13.0%. On growth, PANW holds the edge at +14.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CHKPCheck Point Softw… | PANWPalo Alto Network… |
|---|---|---|
| RevenueTrailing 12 months | $2.8B | $9.9B |
| EBITDAEarnings before interest/tax | $909M | $1.9B |
| Net IncomeAfter-tax profit | $1.1B | $1.3B |
| Free Cash FlowCash after capex | $1.3B | $4.1B |
| Gross MarginGross profit ÷ Revenue | +85.0% | +73.5% |
| Operating MarginEBIT ÷ Revenue | +29.8% | +14.4% |
| Net MarginNet income ÷ Revenue | +38.4% | +13.0% |
| FCF MarginFCF ÷ Revenue | +47.5% | +41.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +4.8% | +14.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +5.8% | +57.9% |
CHKP leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
CHKP leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 12.2x trailing earnings, CHKP trades at a 89% valuation discount to PANW's 115.0x P/E. On an enterprise value basis, CHKP's 13.5x EV/EBITDA is more attractive than PANW's 80.3x.
| Metric | CHKPCheck Point Softw… | PANWPalo Alto Network… |
|---|---|---|
| Market CapShares × price | $12.3B | $129.3B |
| Enterprise ValueMkt cap + debt − cash | $12.4B | $127.4B |
| Trailing P/EPrice ÷ TTM EPS | 12.23x | 114.99x |
| Forward P/EPrice ÷ next-FY EPS est. | 11.27x | 49.90x |
| PEG RatioP/E ÷ EPS growth rate | 1.22x | — |
| EV / EBITDAEnterprise value multiple | 13.46x | 80.32x |
| Price / SalesMarket cap ÷ Revenue | 4.50x | 14.03x |
| Price / BookPrice ÷ Book value/share | 4.49x | 16.68x |
| Price / FCFMarket cap ÷ FCF | 10.15x | 37.28x |
CHKP leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
CHKP leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
CHKP delivers a 36.4% return on equity — every $100 of shareholder capital generates $36 in annual profit, vs $14 for PANW. PANW carries lower financial leverage with a 0.04x debt-to-equity ratio, signaling a more conservative balance sheet compared to CHKP's 0.68x. On the Piotroski fundamental quality scale (0–9), CHKP scores 6/9 vs PANW's 4/9, reflecting solid financial health.
| Metric | CHKPCheck Point Softw… | PANWPalo Alto Network… |
|---|---|---|
| ROE (TTM)Return on equity | +36.4% | +13.6% |
| ROA (TTM)Return on assets | +15.8% | +5.1% |
| ROICReturn on invested capital | +23.2% | +17.1% |
| ROCEReturn on capital employed | +17.2% | +8.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.68x | 0.04x |
| Net DebtTotal debt minus cash | $172M | -$1.9B |
| Cash & Equiv.Liquid assets | $1.8B | $2.3B |
| Total DebtShort + long-term debt | $2.0B | $338M |
| Interest CoverageEBIT ÷ Interest expense | — | 1559.00x |
CHKP leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
PANW leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PANW five years ago would be worth $32,357 today (with dividends reinvested), compared to $9,811 for CHKP. Over the past 12 months, PANW leads with a -2.2% total return vs CHKP's -46.6%. The 3-year compound annual growth rate (CAGR) favors PANW at 26.0% vs CHKP's -0.9% — a key indicator of consistent wealth creation.
| Metric | CHKPCheck Point Softw… | PANWPalo Alto Network… |
|---|---|---|
| YTD ReturnYear-to-date | -35.0% | +2.6% |
| 1-Year ReturnPast 12 months | -46.6% | -2.2% |
| 3-Year ReturnCumulative with dividends | -2.7% | +100.0% |
| 5-Year ReturnCumulative with dividends | -1.9% | +223.6% |
| 10-Year ReturnCumulative with dividends | +43.7% | +684.6% |
| CAGR (3Y)Annualised 3-year return | -0.9% | +26.0% |
PANW leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — CHKP and PANW each lead in 1 of 2 comparable metrics.
Risk & Volatility
CHKP is the less volatile stock with a 0.36 beta — it tends to amplify market swings less than PANW's 1.02 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PANW currently trades 82.3% from its 52-week high vs CHKP's 50.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CHKPCheck Point Softw… | PANWPalo Alto Network… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.36x | 1.02x |
| 52-Week HighHighest price in past year | $233.78 | $223.61 |
| 52-Week LowLowest price in past year | $112.23 | $139.57 |
| % of 52W HighCurrent price vs 52-week peak | +50.3% | +82.3% |
| RSI (14)Momentum oscillator 0–100 | 31.4 | 62.9 |
| Avg Volume (50D)Average daily shares traded | 1.3M | 7.9M |
Evenly matched — CHKP and PANW each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates CHKP as "Hold" and PANW as "Buy". Consensus price targets imply 30.9% upside for CHKP (target: $154) vs 13.0% for PANW (target: $208).
| Metric | CHKPCheck Point Softw… | PANWPalo Alto Network… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $153.94 | $207.85 |
| # AnalystsCovering analysts | 63 | 86 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +11.4% | 0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
CHKP leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). PANW leads in 1 (Total Returns). 1 tied.
Best OverallCheck Point Software Techno… (CHKP)Leads 3 of 6 categories
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CHKP vs PANW: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is CHKP or PANW a better buy right now?
For growth investors, Palo Alto Networks, Inc.
(PANW) is the stronger pick with 14. 9% revenue growth year-over-year, versus 6. 3% for Check Point Software Technologies Ltd. (CHKP). Check Point Software Technologies Ltd. (CHKP) offers the better valuation at 12. 2x trailing P/E (11. 3x forward), making it the more compelling value choice. Analysts rate Palo Alto Networks, Inc. (PANW) a "Buy" — based on 86 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CHKP or PANW?
On trailing P/E, Check Point Software Technologies Ltd.
(CHKP) is the cheapest at 12. 2x versus Palo Alto Networks, Inc. at 115. 0x. On forward P/E, Check Point Software Technologies Ltd. is actually cheaper at 11. 3x.
03Which is the better long-term investment — CHKP or PANW?
Over the past 5 years, Palo Alto Networks, Inc.
(PANW) delivered a total return of +223. 6%, compared to -1. 9% for Check Point Software Technologies Ltd. (CHKP). Over 10 years, the gap is even starker: PANW returned +684. 6% versus CHKP's +43. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CHKP or PANW?
By beta (market sensitivity over 5 years), Check Point Software Technologies Ltd.
(CHKP) is the lower-risk stock at 0. 36β versus Palo Alto Networks, Inc. 's 1. 02β — meaning PANW is approximately 184% more volatile than CHKP relative to the S&P 500. On balance sheet safety, Palo Alto Networks, Inc. (PANW) carries a lower debt/equity ratio of 4% versus 68% for Check Point Software Technologies Ltd. — giving it more financial flexibility in a downturn.
05Which is growing faster — CHKP or PANW?
By revenue growth (latest reported year), Palo Alto Networks, Inc.
(PANW) is pulling ahead at 14. 9% versus 6. 3% for Check Point Software Technologies Ltd. (CHKP). On earnings-per-share growth, the picture is similar: Check Point Software Technologies Ltd. grew EPS 29. 0% year-over-year, compared to -56. 0% for Palo Alto Networks, Inc.. Over a 3-year CAGR, PANW leads at 18. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — CHKP or PANW?
Check Point Software Technologies Ltd.
(CHKP) is the more profitable company, earning 38. 8% net margin versus 12. 3% for Palo Alto Networks, Inc. — meaning it keeps 38. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CHKP leads at 30. 5% versus 13. 5% for PANW. At the gross margin level — before operating expenses — CHKP leads at 85. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is CHKP or PANW more undervalued right now?
On forward earnings alone, Check Point Software Technologies Ltd.
(CHKP) trades at 11. 3x forward P/E versus 49. 9x for Palo Alto Networks, Inc. — 38. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CHKP: 30. 9% to $153. 94.
08Which pays a better dividend — CHKP or PANW?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is CHKP or PANW better for a retirement portfolio?
For long-horizon retirement investors, Check Point Software Technologies Ltd.
(CHKP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 36)). Both have compounded well over 10 years (CHKP: +43. 7%, PANW: +684. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between CHKP and PANW?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: CHKP is a mid-cap deep-value stock; PANW is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(CHKP: 4.8% · PANW: 14.9%)Net Margin>
%
(CHKP: 38.4% · PANW: 13.0%)P/E Ratio<
x
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