CISCO SYSTEMS, INC. vs PALO ALTO NETWORKS, INC, two Computer Hardware stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Cisco earns on its capital today, while Palo Alto Networks is still paying to get there. Cisco earns 24% on equity and 9.5% on assets selling networking gear and software, a steady mid-cycle return, while Palo Alto Networks earns just 3% on equity and 1.8% on assets, the mark of a company spending hard ahead of its profits. Palo Alto actually runs a wider gross margin, 68% to Cisco's 64%, but its operating line is negative at minus 6%, so it is lossmaking at that level and there is no clean operating multiple to quote. The reported net margin of 8% and the headline 266 times earnings rest on items below the operating line, against Cisco's 20% net and 40 times. Cisco also pays you 1.34% to hold it and converts more price into free cash, 2.45% to 1.69%. The structural difference is simple: one already earns on its capital, the other is still buying its way to that point.
Comparison updated 2026-06-15.
| Metric | CSCO | PANW |
|---|---|---|
| Price | $121.24 | $325.82 |
| Market cap | $482.8B | $261.0B |
| Sector | Computer Hardware | Computer Hardware |
| Stage | Mature | Growth |
| P/E | 40.3 | 267.1 |
| P/B | 9.88 | 9.43 |
| P/S | 7.95 | 24.61 |
| EV/EBITDA | 36.0 | 234.3 |
| Revenue growth | +9.2% | +19.4% |
| Gross margin | 63.6% | 67.5% |
| Operating margin | 25.0% | -6.1% |
| Net margin | 19.7% | 8.0% |
| Return on equity | 24.5% | 3.0% |
| Return on assets | 9.5% | 1.8% |
| Return on invested capital | 14.2% | 2.8% |
| FCF yield | 2.4% | 1.4% |
| Dividend yield | 1.3% | — |
| Debt / equity | 0.71 | 0.04 |
| Current ratio | 0.92 | 0.86 |
| Altman Z (solvency) | 4.34 | 6.28 |
| Piotroski F (quality) | 6 / 9 | 4 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.