Comprehensive Stock Comparison
Compare Qualys, Inc. (QLYS) vs Palo Alto Networks, Inc. (PANW) 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 QLYS's 9.6% |
| Value | QLYS | Lower P/E (12.5x vs 40.1x) |
| Quality / Margins | QLYS | 29.0% net margin vs PANW's 13.0% |
| Stability / Safety | QLYS | Beta 0.81 vs PANW's 1.16 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | PANW | -21.8% vs QLYS's -29.7% |
| Efficiency (ROA) | QLYS | 18.3% ROA vs PANW's 5.1%, ROIC 57.8% 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
Qualys is a cloud-based cybersecurity platform that provides vulnerability management, compliance, and threat protection solutions. It generates revenue primarily through subscription fees for its Qualys Cloud Platform — which includes vulnerability scanning, compliance monitoring, and web application security services — with over 90% of revenue coming from subscriptions. The company's key advantage is its cloud-native architecture that enables continuous, real-time security assessments across global IT environments without requiring customer-deployed hardware.
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.
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
QLYS 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 — 15.1x QLYS's $653M. QLYS is the more profitable business, keeping 29.0% 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 | QLYSQualys, Inc. | PANWPalo Alto Network… |
|---|---|---|
| RevenueTrailing 12 months | $653M | $9.9B |
| EBITDAEarnings before interest/tax | $228M | $1.9B |
| Net IncomeAfter-tax profit | $189M | $1.3B |
| Free Cash FlowCash after capex | $271M | $4.1B |
| Gross MarginGross profit ÷ Revenue | +82.4% | +73.5% |
| Operating MarginEBIT ÷ Revenue | +32.5% | +14.4% |
| Net MarginNet income ÷ Revenue | +29.0% | +13.0% |
| FCF MarginFCF ÷ Revenue | +41.6% | +41.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.4% | +14.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +12.1% | +57.9% |
Valuation Metrics
At 19.9x trailing earnings, QLYS trades at a 79% valuation discount to PANW's 93.1x P/E. On an enterprise value basis, QLYS's 15.2x EV/EBITDA is more attractive than PANW's 64.8x.
| Metric | QLYSQualys, Inc. | PANWPalo Alto Network… |
|---|---|---|
| Market CapShares × price | $3.3B | $104.7B |
| Enterprise ValueMkt cap + debt − cash | $3.1B | $102.8B |
| Trailing P/EPrice ÷ TTM EPS | 19.89x | 93.08x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.54x | 40.06x |
| PEG RatioP/E ÷ EPS growth rate | 0.88x | — |
| EV / EBITDAEnterprise value multiple | 15.24x | 64.78x |
| Price / SalesMarket cap ÷ Revenue | 5.47x | 11.35x |
| Price / BookPrice ÷ Book value/share | 7.24x | 13.50x |
| Price / FCFMarket cap ÷ FCF | 14.33x | 30.17x |
Profitability & Efficiency
QLYS delivers a 35.7% 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 QLYS's 0.10x. On the Piotroski fundamental quality scale (0–9), QLYS scores 5/9 vs PANW's 4/9, reflecting solid financial health.
| Metric | QLYSQualys, Inc. | PANWPalo Alto Network… |
|---|---|---|
| ROE (TTM)Return on equity | +35.7% | +13.6% |
| ROA (TTM)Return on assets | +18.3% | +5.1% |
| ROICReturn on invested capital | +57.8% | +17.1% |
| ROCEReturn on capital employed | +38.7% | +8.9% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.10x | 0.04x |
| Net DebtTotal debt minus cash | -$185M | -$1.9B |
| Cash & Equiv.Liquid assets | $232M | $2.3B |
| Total DebtShort + long-term debt | $47M | $338M |
| Interest CoverageEBIT ÷ Interest expense | — | 1559.00x |
Total Returns (with DRIP)
A $10,000 investment in PANW five years ago would be worth $24,321 today (with dividends reinvested), compared to $9,270 for QLYS. Over the past 12 months, PANW leads with a -21.8% total return vs QLYS's -29.7%. The 3-year compound annual growth rate (CAGR) favors PANW at 16.5% vs QLYS's -7.8% — a key indicator of consistent wealth creation.
| Metric | QLYSQualys, Inc. | PANWPalo Alto Network… |
|---|---|---|
| YTD ReturnYear-to-date | -29.4% | -17.0% |
| 1-Year ReturnPast 12 months | -29.7% | -21.8% |
| 3-Year ReturnCumulative with dividends | -21.7% | +58.1% |
| 5-Year ReturnCumulative with dividends | -7.3% | +143.2% |
| 10-Year ReturnCumulative with dividends | +270.3% | +517.2% |
| CAGR (3Y)Annualised 3-year return | -7.8% | +16.5% |
Risk & Volatility
QLYS is the less volatile stock with a 0.81 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. PANW currently trades 66.6% from its 52-week high vs QLYS's 59.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | QLYSQualys, Inc. | PANWPalo Alto Network… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.81x | 1.16x |
| 52-Week HighHighest price in past year | $155.47 | $223.61 |
| 52-Week LowLowest price in past year | $85.14 | $139.57 |
| % of 52W HighCurrent price vs 52-week peak | +59.5% | +66.6% |
| RSI (14)Momentum oscillator 0–100 | 28.4 | 35.4 |
| Avg Volume (50D)Average daily shares traded | 453K | 7.9M |
Analyst Outlook
Wall Street rates QLYS as "Hold" and PANW as "Buy". Consensus price targets imply 49.0% upside for QLYS (target: $138) vs 41.9% for PANW (target: $211).
| Metric | QLYSQualys, Inc. | PANWPalo Alto Network… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $137.80 | $211.29 |
| # AnalystsCovering analysts | 48 | 85 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +4.2% | 0.0% |
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 |
|---|---|---|---|
| Qualys, Inc. (QLYS) | 100 | 164.57 | +64.6% |
| Palo Alto Networks,… (PANW) | 100 | 556.01 | +456.0% |
Palo Alto Networks,… (PANW) returned +143% over 5 years vs Qualys, Inc. (QLYS)'s -7%. 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 |
|---|---|---|---|
| Qualys, Inc. (QLYS) | $198M | $608M | +207.0% |
| Palo Alto Networks,… (PANW) | $1.4B | $9.2B | +569.0% |
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 |
|---|---|---|---|
| Qualys, Inc. (QLYS) | 9.7% | 28.6% | +194.3% |
| Palo Alto Networks,… (PANW) | -16.4% | 12.3% | +175.0% |
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 |
|---|---|---|---|
| Qualys, Inc. (QLYS) | 58.8 | 30.2 | -48.6% |
| Palo Alto Networks,… (PANW) | 230.4 | 115.1 | -50.0% |
Qualys, Inc. has traded in a 30x–78x P/E range over 8 years; current trailing P/E is ~20x. Palo Alto Networks, Inc. has traded in a 50x–230x P/E range over 3 years; current trailing P/E is ~93x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Qualys, Inc. (QLYS) | 0.5 | 4.65 | +830.0% |
| Palo Alto Networks,… (PANW) | -0.43 | 1.6 | +472.1% |
Palo Alto Networks, Inc.'s EPS grew from $-0.43 (2016) to $1.60 (2025).
Chart 6Free Cash Flow — 5 Years
Qualys, Inc. generated $232M FCF in 2024 (+32% vs 2021). Palo Alto Networks, Inc. generated $3B FCF in 2025 (+150% vs 2021).
QLYS vs PANW: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is QLYS or PANW a better buy right now?
Qualys, Inc. (QLYS) offers the better valuation at 19.9x trailing P/E (12.5x 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 — QLYS or PANW?
On trailing P/E, Qualys, Inc. (QLYS) is the cheapest at 19.9x versus Palo Alto Networks, Inc. at 93.1x. On forward P/E, Qualys, Inc. is actually cheaper at 12.5x.
03Which is the better long-term investment — QLYS or PANW?
Over the past 5 years, Palo Alto Networks, Inc. (PANW) delivered a total return of +143.2%, compared to -7.3% for Qualys, Inc. (QLYS). 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 QLYS's +270.3%. 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 — QLYS or PANW?
By beta (market sensitivity over 5 years), Qualys, Inc. (QLYS) is the lower-risk stock at 0.81β versus Palo Alto Networks, Inc.'s 1.16β — meaning PANW is approximately 42% more volatile than QLYS relative to the S&P 500. On balance sheet safety, Palo Alto Networks, Inc. (PANW) carries a lower debt/equity ratio of 4% versus 10% for Qualys, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — QLYS or PANW?
Qualys, Inc. (QLYS) is the more profitable company, earning 28.6% net margin versus 12.3% for Palo Alto Networks, Inc. — meaning it keeps 28.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: QLYS leads at 30.8% versus 13.5% for PANW. At the gross margin level — before operating expenses — QLYS leads at 81.7%, 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 QLYS or PANW more undervalued right now?
On forward earnings alone, Qualys, Inc. (QLYS) trades at 12.5x forward P/E versus 40.1x for Palo Alto Networks, Inc. — 27.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for QLYS: 49.0% to $137.80.
07Which pays a better dividend — QLYS 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.
08Is QLYS or PANW better for a retirement portfolio?
For long-horizon retirement investors, Qualys, Inc. (QLYS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.81), +270.3% 10Y return). Both have compounded well over 10 years (QLYS: +270.3%, 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 QLYS 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. 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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