CHKP vs. PANW: Check Point Software vs. Palo Alto Networks Stock Comparison
How do Check Point Software (CHKP) and Palo Alto Networks (PANW) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
Check Point Software (CHKP) and Palo Alto Networks (PANW) are both classified in the Systems Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | CHKP | PANW |
|---|---|---|
| Name | Check Point Software Technologies Ltd. | Palo Alto Networks, Inc. |
| Country/Region | Israel | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Systems Software | Systems Software |
| Market Capitalization | 14.72 billion USD | 256.86 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | June 28, 1996 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | CHKP | PANW |
|---|---|---|
| Total Return (1Y) | -27.87% | 53.99% |
| Total Return (3Y, Annualized) | 1.46% | 39.16% |
| Total Return (5Y, Annualized) | 4.07% | 30.80% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | CHKP | PANW |
|---|---|---|
| Volatility (1Y, Annualized) | 40.93% | 51.34% |
| Beta (5Y) | 0.43 | 1.00 |
| Max Drawdown (5Y) | -51.83% | -36.01% |
| Avg. Volume (3M) | 1.19M | 6.03M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | CHKP | PANW |
|---|---|---|
| Sharpe Ratio (1Y) | -0.79 | 0.97 |
| Sortino Ratio (1Y) | -0.97 | 1.49 |
Profitability
ROE (TTM)
Check Point Software (CHKP) at 30.61% sits in the top ROE quartile, while Palo Alto Networks (PANW) at 1.74% is closer to the peer norm — stronger capital efficiency for CHKP.
CHKP
Software & Services industry group
30.61%
- Max
- 53.85%
- CHKP
- 30.61%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
PANW
Software & Services industry group
1.74%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- PANW
- 1.74%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Check Point Software (CHKP) at 31.74% retains a top-quartile share of revenue as profit, ahead of Palo Alto Networks (PANW) at 2.67%, which keeps about the industry-typical share.
CHKP
Software & Services industry group
31.74%
- Max
- 41.17%
- CHKP
- 31.74%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
PANW
Software & Services industry group
2.67%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- PANW
- 2.67%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
Check Point Software (CHKP) at 26.46% operates in the top operating margin quartile, ahead of Palo Alto Networks (PANW) at 5.40%, which runs around its industry’s norm.
CHKP
Software & Services industry group
26.46%
- Max
- 46.89%
- CHKP
- 26.46%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
PANW
Software & Services industry group
5.40%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- PANW
- 5.40%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | CHKP | PANW |
|---|---|---|
| ROE (TTM) | 30.61% | 1.74% |
| ROA (TTM) | 7.43% | 1.40% |
| Net Margin (TTM) | 31.74% | 2.67% |
| Operating Margin (TTM) | 26.46% | 5.40% |
| Gross Margin (TTM) | 87.19% | 70.38% |
Growth
Revenue Growth
Palo Alto Networks (PANW) at 24.50% is around its peer norm for revenue growth, while Check Point Software (CHKP) at 6.25% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Check Point Software (CHKP) at 28.95% is around its peer norm for EPS growth, while Palo Alto Networks (PANW) at -75.00% drops into the bottom quartile, signaling weaker earnings momentum.
Growth Metrics
| Metric | CHKP | PANW |
|---|---|---|
| Revenue Growth (YoY) | 6.25% | 24.50% |
| Revenue Growth (3Y CAGR) | 5.37% | 18.54% |
| EPS Growth (YoY) | 28.95% | -75.00% |
| EPS Growth (3Y CAGR) | 15.09% | -14.50% |
Financial Strength
Current Ratio (MRQ)
Check Point Software (CHKP) at 1.60 keeps current ratio within its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.87 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for PANW.
CHKP
Software & Services industry group
1.60
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- CHKP
- 1.60
- Q1
- 1.01
- Min
- 0.03
PANW
Software & Services industry group
0.87
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- PANW
- 0.87
- Min
- 0.03
Debt / Equity (MRQ)
Both Check Point Software (CHKP) at 0.75 and Palo Alto Networks (PANW) at 0.09 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
CHKP
Software & Services industry group
0.75
- Max
- 2.52
- Q3
- 1.13
- CHKP
- 0.75
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
PANW
Software & Services industry group
0.09
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- PANW
- 0.09
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | CHKP | PANW |
|---|---|---|
| Current Ratio (MRQ) | 1.60 | 0.87 |
| Debt / Equity (MRQ) | 0.75 | 0.09 |
| Net Debt / EBITDA | -0.22 | -0.32 |
Dividends
Dividend Yield (TTM)
Neither Check Point Software (CHKP) nor Palo Alto Networks (PANW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
CHKP
Software & Services industry group
0.00%
- CHKP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Check Point Software (CHKP) nor Palo Alto Networks (PANW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
CHKP
Software & Services industry group
0.00%
- CHKP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | CHKP | PANW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Check Point Software (CHKP) at 17.35 sits in the cheaper P/E ratio quartile, while Palo Alto Networks (PANW) at 784.60 trades above its peer range — a wide earnings-valuation gap relative to industry peers.
CHKP
Software & Services industry group
17.35
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- CHKP
- 17.35
- Min
- 6.69
PANW
Software & Services industry group
784.60
- PANW
- 784.60
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Check Point Software (CHKP) at 5.34 prices around its industry’s typical P/S ratio, while Palo Alto Networks (PANW) at 22.37 clears its benchmark range — PANW looks notably rich on sales.
CHKP
Software & Services industry group
5.34
- Max
- 17.91
- Q3
- 8.78
- CHKP
- 5.34
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
PANW
Software & Services industry group
22.37
- PANW
- 22.37
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Check Point Software (CHKP) at 5.54 is valued about in line with its industry on P/B ratio, while Palo Alto Networks (PANW) at 9.30 carries an above-peer premium to book — PANW is pricier on assets.
CHKP
Software & Services industry group
5.54
- Max
- 16.63
- Q3
- 8.50
- CHKP
- 5.54
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
PANW
Software & Services industry group
9.30
- Max
- 16.63
- PANW
- 9.30
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | CHKP | PANW |
|---|---|---|
| P/E Ratio (TTM) | 17.35 | 784.60 |
| P/S Ratio (TTM) | 5.34 | 22.37 |
| P/B Ratio (MRQ) | 5.54 | 9.30 |
| Free Cash Flow Yield (TTM) | 4.87% | 1.65% |