Stratasys (SSYS) and Palo Alto Networks (PANW) Head-To-Head Analysis

Stratasys (NASDAQ: SSYS) and Palo Alto Networks (NYSE:PANW) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Analyst Recommendations

This is a summary of current recommendations for Stratasys and Palo Alto Networks, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stratasys 1 9 3 0 2.15
Palo Alto Networks 1 5 36 0 2.83

Stratasys presently has a consensus price target of $23.56, indicating a potential upside of 17.90%. Palo Alto Networks has a consensus price target of $183.74, indicating a potential downside of 8.93%. Given Stratasys’ higher possible upside, analysts clearly believe Stratasys is more favorable than Palo Alto Networks.

Institutional and Insider Ownership

72.6% of Stratasys shares are held by institutional investors. Comparatively, 81.9% of Palo Alto Networks shares are held by institutional investors. 4.3% of Stratasys shares are held by insiders. Comparatively, 4.8% of Palo Alto Networks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Stratasys and Palo Alto Networks’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stratasys $668.36 million 1.60 -$38.27 million $0.13 153.69
Palo Alto Networks $1.76 billion 10.52 -$216.60 million ($1.71) -117.98

Stratasys has higher earnings, but lower revenue than Palo Alto Networks. Palo Alto Networks is trading at a lower price-to-earnings ratio than Stratasys, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Stratasys has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Palo Alto Networks has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Profitability

This table compares Stratasys and Palo Alto Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stratasys -5.94% 0.78% 0.65%
Palo Alto Networks -9.96% -14.74% -3.07%

Summary

Stratasys beats Palo Alto Networks on 8 of the 14 factors compared between the two stocks.

Stratasys Company Profile

Stratasys Ltd. provides 3D printing and additive manufacturing solutions for individuals, small and large businesses, and enterprises. Its 3D printing systems utilize its fused deposition modeling (FDM) and inkjet-based PolyJet technologies to enable the production of prototypes, tools used for production and manufactured goods directly from 3D CAD files or other 3D content. The company offers entry-level desktop 3D printers to systems for rapid prototyping, and production systems for direct digital manufacturing. It also provides 3D printing consumable materials, including FDM cartridge-based materials, PolyJet cartridge-based materials, non-color digital materials, and color variations; and downloadable and cloud-based professional 3D printing workflow software, as well as suites of software with various 3D printing systems. In addition, the company offers customer support, basic warranty, and extended support programs; leases or rents 3D printers and 3D production systems; produces prototypes and end-use parts for customers from a customer-provided CAD file; and provides plastic and metal parts for rapid prototyping and production processes, as well as related professional services. Further, it operates Thingiverse, an online community for sharing downloadable, digital 3D designs; and GrabCAD Community, a resource of CAD models for mechanical engineers and designers. The company's products and services are primarily used in automotive, aerospace, medical, dental, jewelry, and education markets. Stratasys Ltd. sells its products through a network of resellers and independent sales agents worldwide. The company was founded in 1989 and is headquartered in Eden Prairie, Minnesota.

Palo Alto Networks Company Profile

Palo Alto Networks, Inc. provides security platform solutions worldwide. Its platform includes Next-Generation Firewall that delivers application, user, and content visibility and control, as well as protection against network-based cyber threats; Advanced Endpoint Protection, which prevents cyber-attacks that exploit software vulnerabilities on various fixed, mobile, and virtual endpoints and servers; and Threat Intelligence Cloud, which offers central intelligence capabilities, security for software as a service applications, and automated delivery of preventative measures against cyber-attacks. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances deployed on an end-customer's network as a virtual or a physical appliance; and Virtual System Upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also offers subscription services covering the areas of threat prevention, uniform resource locator filtering, malware and persistent threat, laptop and mobile device protection, and firewall, as well as cyber-attack, threat intelligence, and content control. In addition, the company provides support services; and professional services, including application traffic management, solution design and planning, configuration, and firewall migration, as well as online and classroom-style education training services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was founded in 2005 and is headquartered in Santa Clara, California.

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