Comprehensive Stock Comparison
Compare Palo Alto Networks, Inc. (PANW) vs Check Point Software Technologies Ltd. (CHKP) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | PANW | 14.9% revenue growth vs CHKP's 6.2% |
| Value | CHKP | Lower P/E (14.6x vs 40.1x) |
| Quality / Margins | CHKP | 37.6% net margin vs PANW's 13.0% |
| Stability / Safety | CHKP | Beta 0.61 vs PANW's 1.16, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | PANW | -21.8% vs CHKP's -31.0% |
| Efficiency (ROA) | CHKP | 17.7% ROA vs PANW's 5.1%, ROIC 28.6% vs 17.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Palo Alto Networks is a cybersecurity company that provides a comprehensive platform of security products and services to protect organizations from cyber threats. It generates revenue primarily through subscription services — which account for over 80% of total revenue — along with product sales and support contracts. The company's key advantage is its integrated security platform approach, which creates switching costs and network effects as customers adopt more of its ecosystem.
Check Point Software Technologies is a cybersecurity company that develops and sells a comprehensive suite of security solutions for networks, endpoints, cloud environments, and mobile devices. It generates revenue primarily through software license sales and subscription services — including security gateways, threat prevention technologies, and cloud security offerings — along with technical support and professional services. The company's key advantage is its integrated Check Point Infinity Architecture, which provides unified protection across multiple attack vectors and environments through a single management console.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
CHKP leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). PANW leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
PANW is the larger business by revenue, generating $9.9B annually — 3.7x CHKP's $2.7B. CHKP is the more profitable business, keeping 37.6% 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 | PANWPalo Alto Network… | CHKPCheck Point Softw… |
|---|---|---|
| RevenueTrailing 12 months | $9.9B | $2.7B |
| EBITDAEarnings before interest/tax | $1.9B | $946M |
| Net IncomeAfter-tax profit | $1.3B | $1.0B |
| Free Cash FlowCash after capex | $4.1B | $1.2B |
| Gross MarginGross profit ÷ Revenue | +73.5% | +86.0% |
| Operating MarginEBIT ÷ Revenue | +14.4% | +31.8% |
| Net MarginNet income ÷ Revenue | +13.0% | +37.6% |
| FCF MarginFCF ÷ Revenue | +41.1% | +43.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.9% | +6.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +57.9% | +79.2% |
Valuation Metrics
At 20.4x trailing earnings, CHKP trades at a 78% valuation discount to PANW's 93.1x P/E. On an enterprise value basis, CHKP's 16.7x EV/EBITDA is more attractive than PANW's 64.8x.
| Metric | PANWPalo Alto Network… | CHKPCheck Point Softw… |
|---|---|---|
| Market CapShares × price | $104.7B | $16.5B |
| Enterprise ValueMkt cap + debt − cash | $102.8B | $16.0B |
| Trailing P/EPrice ÷ TTM EPS | 93.08x | 20.38x |
| Forward P/EPrice ÷ next-FY EPS est. | 40.06x | 14.58x |
| PEG RatioP/E ÷ EPS growth rate | — | 3.11x |
| EV / EBITDAEnterprise value multiple | 64.78x | 16.68x |
| Price / SalesMarket cap ÷ Revenue | 11.35x | 6.42x |
| Price / BookPrice ÷ Book value/share | 13.50x | 6.18x |
| Price / FCFMarket cap ÷ FCF | 30.17x | 16.03x |
Profitability & Efficiency
CHKP delivers a 32.8% return on equity — every $100 of shareholder capital generates $33 in annual profit, vs $14 for PANW. CHKP carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to PANW's 0.04x. On the Piotroski fundamental quality scale (0–9), CHKP scores 7/9 vs PANW's 4/9, reflecting strong financial health.
| Metric | PANWPalo Alto Network… | CHKPCheck Point Softw… |
|---|---|---|
| ROE (TTM)Return on equity | +13.6% | +32.8% |
| ROA (TTM)Return on assets | +5.1% | +17.7% |
| ROICReturn on invested capital | +17.1% | +28.6% |
| ROCEReturn on capital employed | +8.9% | +23.1% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 7 |
| Debt / EquityFinancial leverage | 0.04x | 0.01x |
| Net DebtTotal debt minus cash | -$1.9B | -$476M |
| Cash & Equiv.Liquid assets | $2.3B | $506M |
| Total DebtShort + long-term debt | $338M | $30M |
| Interest CoverageEBIT ÷ Interest expense | 1559.00x | 486.67x |
Total Returns (with DRIP)
A $10,000 investment in PANW five years ago would be worth $24,321 today (with dividends reinvested), compared to $13,454 for CHKP. Over the past 12 months, PANW leads with a -21.8% total return vs CHKP's -31.0%. The 3-year compound annual growth rate (CAGR) favors PANW at 16.5% vs CHKP's 7.1% — a key indicator of consistent wealth creation.
| Metric | PANWPalo Alto Network… | CHKPCheck Point Softw… |
|---|---|---|
| YTD ReturnYear-to-date | -17.0% | -16.0% |
| 1-Year ReturnPast 12 months | -21.8% | -31.0% |
| 3-Year ReturnCumulative with dividends | +58.1% | +22.9% |
| 5-Year ReturnCumulative with dividends | +143.2% | +34.5% |
| 10-Year ReturnCumulative with dividends | +517.2% | +83.1% |
| CAGR (3Y)Annualised 3-year return | +16.5% | +7.1% |
Risk & Volatility
CHKP is the less volatile stock with a 0.61 beta — it tends to amplify market swings less than PANW's 1.16 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | PANWPalo Alto Network… | CHKPCheck Point Softw… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.16x | 0.61x |
| 52-Week HighHighest price in past year | $223.61 | $234.36 |
| 52-Week LowLowest price in past year | $139.57 | $150.38 |
| % of 52W HighCurrent price vs 52-week peak | +66.6% | +64.9% |
| RSI (14)Momentum oscillator 0–100 | 35.4 | 30.8 |
| Avg Volume (50D)Average daily shares traded | 7.9M | 1.1M |
Analyst Outlook
Wall Street rates PANW as "Buy" and CHKP as "Hold". Consensus price targets imply 41.9% upside for PANW (target: $211) vs 36.7% for CHKP (target: $208).
| Metric | PANWPalo Alto Network… | CHKPCheck Point Softw… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $211.29 | $207.93 |
| # AnalystsCovering analysts | 85 | 62 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +7.9% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Palo Alto Networks,… (PANW) | 100 | 556.01 | +456.0% |
| Check Point Softwar… (CHKP) | 100 | 173.08 | +73.1% |
Palo Alto Networks,… (PANW) returned +143% over 5 years vs Check Point Softwar… (CHKP)'s +35%. A $10,000 investment in PANW 5 years ago would be worth $24,321 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Palo Alto Networks,… (PANW) | $1.4B | $9.2B | +569.0% |
| Check Point Softwar… (CHKP) | $1.7B | $2.6B | +47.3% |
Palo Alto Networks, Inc.'s revenue grew from $1.4B (2016) to $9.2B (2025) — a 23.5% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Palo Alto Networks,… (PANW) | -16.4% | 12.3% | +175.0% |
| Check Point Softwar… (CHKP) | 41.6% | 33.0% | -20.8% |
Palo Alto Networks, Inc.'s net margin went from -16% (2016) to 12% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Palo Alto Networks,… (PANW) | 230.4 | 115.1 | -50.0% |
| Check Point Softwar… (CHKP) | 21.5 | 25 | +16.3% |
Palo Alto Networks, Inc. has traded in a 50x–230x P/E range over 3 years; current trailing P/E is ~93x. Check Point Software Technologies Ltd. has traded in a 19x–25x P/E range over 8 years; current trailing P/E is ~20x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Palo Alto Networks,… (PANW) | -0.43 | 1.6 | +472.1% |
| Check Point Softwar… (CHKP) | 4.18 | 7.46 | +78.5% |
Palo Alto Networks, Inc.'s EPS grew from $-0.43 (2016) to $1.60 (2025).
Chart 6Free Cash Flow — 5 Years
Palo Alto Networks, Inc. generated $3B FCF in 2025 (+150% vs 2021). Check Point Software Technologies Ltd. generated $1B FCF in 2024 (-13% vs 2021).
PANW vs CHKP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PANW or CHKP a better buy right now?
Check Point Software Technologies Ltd. (CHKP) offers the better valuation at 20.4x trailing P/E (14.6x forward), making it the more compelling value choice. Analysts rate Palo Alto Networks, Inc. (PANW) a "Buy" — based on 85 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 — PANW or CHKP?
On trailing P/E, Check Point Software Technologies Ltd. (CHKP) is the cheapest at 20.4x versus Palo Alto Networks, Inc. at 93.1x. On forward P/E, Check Point Software Technologies Ltd. is actually cheaper at 14.6x.
03Which is the better long-term investment — PANW or CHKP?
Over the past 5 years, Palo Alto Networks, Inc. (PANW) delivered a total return of +143.2%, compared to +34.5% for Check Point Software Technologies Ltd. (CHKP). A $10,000 investment in PANW five years ago would be worth approximately $24K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PANW returned +517.2% versus CHKP's +83.1%. 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 — PANW or CHKP?
By beta (market sensitivity over 5 years), Check Point Software Technologies Ltd. (CHKP) is the lower-risk stock at 0.61β versus Palo Alto Networks, Inc.'s 1.16β — meaning PANW is approximately 90% more volatile than CHKP relative to the S&P 500. On balance sheet safety, Check Point Software Technologies Ltd. (CHKP) carries a lower debt/equity ratio of 1% versus 4% for Palo Alto Networks, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — PANW or CHKP?
Check Point Software Technologies Ltd. (CHKP) is the more profitable company, earning 33.0% net margin versus 12.3% for Palo Alto Networks, Inc. — meaning it keeps 33.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CHKP leads at 34.2% versus 13.5% for PANW. At the gross margin level — before operating expenses — CHKP leads at 87.6%, 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.
06Is PANW or CHKP more undervalued right now?
On forward earnings alone, Check Point Software Technologies Ltd. (CHKP) trades at 14.6x forward P/E versus 40.1x for Palo Alto Networks, Inc. — 25.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PANW: 41.9% to $211.29.
07Which pays a better dividend — PANW or CHKP?
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.
08Is PANW or CHKP 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 0.61)). Both have compounded well over 10 years (CHKP: +83.1%, PANW: +517.2%), 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.
09What are the main differences between PANW and CHKP?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. 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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