EA vs. PANW: A Head-to-Head Stock Comparison

Updated on August 21, 2025

Here’s a clear look at EA and PANW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	EA	PANW
Company Name	Electronic Arts Inc.	Palo Alto Networks, Inc.
Country	United States	United States
GICS Sector	Communication Services	Information Technology
GICS Industry	Entertainment	Software
Market Capitalization	44.64 billion USD	118.13 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	September 20, 1989	July 20, 2012
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of EA and PANW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

EA vs. PANW: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	EA	PANW
5-Day Price Return	9.62%	5.21%
13-Week Price Return	19.52%	-8.60%
26-Week Price Return	35.15%	-5.61%
52-Week Price Return	22.27%	6.83%
Month-to-Date Return	16.99%	1.88%
Year-to-Date Return	21.94%	-2.80%
10-Day Avg. Volume	3.73M	13.39M
3-Month Avg. Volume	3.12M	6.54M
3-Month Volatility	26.34%	35.94%
Beta	0.75	0.97

Profitability

Return on Equity (TTM)

EA

15.27%

Entertainment Industry

Max: 42.50%
Q3: 22.75%
Median: 12.88%
Q1: 7.15%
Min: -6.84%

EA’s Return on Equity of 15.27% is on par with the norm for the Entertainment industry, indicating its profitability relative to shareholder equity is typical for the sector.

PANW

20.06%

Software Industry

Max: 59.01%
Q3: 21.98%
Median: 7.15%
Q1: -11.12%
Min: -51.24%

PANW’s Return on Equity of 20.06% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

EA vs. PANW: A comparison of their Return on Equity (TTM) against their respective Entertainment and Software industry benchmarks.

Net Profit Margin (TTM)

EA

13.94%

Entertainment Industry

Max: 45.25%
Q3: 23.93%
Median: 14.60%
Q1: 4.89%
Min: -22.94%

EA’s Net Profit Margin of 13.94% is aligned with the median group of its peers in the Entertainment industry. This indicates its ability to convert revenue into profit is typical for the sector.

PANW

13.95%

Software Industry

Max: 48.14%
Q3: 18.23%
Median: 5.60%
Q1: -9.22%
Min: -49.36%

PANW’s Net Profit Margin of 13.95% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

EA vs. PANW: A comparison of their Net Profit Margin (TTM) against their respective Entertainment and Software industry benchmarks.

Operating Profit Margin (TTM)

EA

19.09%

Entertainment Industry

Max: 46.83%
Q3: 28.87%
Median: 15.26%
Q1: 8.95%
Min: -5.53%

EA’s Operating Profit Margin of 19.09% is around the midpoint for the Entertainment industry, indicating that its efficiency in managing core business operations is typical for the sector.

PANW

11.09%

Software Industry

Max: 57.34%
Q3: 20.60%
Median: 7.84%
Q1: -8.72%
Min: -51.37%

PANW’s Operating Profit Margin of 11.09% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

EA vs. PANW: A comparison of their Operating Profit Margin (TTM) against their respective Entertainment and Software industry benchmarks.

Profitability at a Glance

Symbol	EA	PANW
Return on Equity (TTM)	15.27%	20.06%
Return on Assets (TTM)	8.23%	5.94%
Net Profit Margin (TTM)	13.94%	13.95%
Operating Profit Margin (TTM)	19.09%	11.09%
Gross Profit Margin (TTM)	79.14%	73.56%

Financial Strength

Current Ratio (MRQ)

EA

0.84

Entertainment Industry

Max: 6.80
Q3: 3.77
Median: 1.87
Q1: 0.86
Min: 0.39

EA’s Current Ratio of 0.84 falls into the lower quartile for the Entertainment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

PANW

0.90

Software Industry

Max: 3.83
Q3: 2.31
Median: 1.45
Q1: 1.03
Min: 0.24

PANW’s Current Ratio of 0.90 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

EA vs. PANW: A comparison of their Current Ratio (MRQ) against their respective Entertainment and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

EA

0.31

Entertainment Industry

Max: 1.65
Q3: 0.71
Median: 0.14
Q1: 0.04
Min: 0.00

EA’s Debt-to-Equity Ratio of 0.31 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

PANW

0.05

Software Industry

Max: 2.14
Q3: 0.90
Median: 0.29
Q1: 0.00
Min: 0.00

PANW’s Debt-to-Equity Ratio of 0.05 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

EA vs. PANW: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Entertainment and Software industry benchmarks.

Interest Coverage Ratio (TTM)

EA

190.43

Entertainment Industry

Max: 62.11
Q3: 31.19
Median: 7.50
Q1: 2.02
Min: -6.33

With an Interest Coverage Ratio of 190.43, EA demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.

PANW

-19.72

Software Industry

Max: 67.02
Q3: 19.86
Median: 0.70
Q1: -12.50
Min: -53.00

PANW has a negative Interest Coverage Ratio of -19.72. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

EA vs. PANW: A comparison of their Interest Coverage Ratio (TTM) against their respective Entertainment and Software industry benchmarks.

Financial Strength at a Glance

Symbol	EA	PANW
Current Ratio (MRQ)	0.84	0.90
Quick Ratio (MRQ)	0.84	0.83
Debt-to-Equity Ratio (MRQ)	0.31	0.05
Interest Coverage Ratio (TTM)	190.43	-19.72

Growth

Revenue Growth

EA vs. PANW: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

EA vs. PANW: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

EA

0.44%

Entertainment Industry

Max: 2.54%
Q3: 1.29%
Median: 0.61%
Q1: 0.00%
Min: 0.00%

EA’s Dividend Yield of 0.44% is consistent with its peers in the Entertainment industry, providing a dividend return that is standard for its sector.

PANW

0.00%

Software Industry

Max: 0.08%
Q3: 0.03%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PANW currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

EA vs. PANW: A comparison of their Dividend Yield (TTM) against their respective Entertainment and Software industry benchmarks.

Dividend Payout Ratio (TTM)

EA

18.91%

Entertainment Industry

Max: 82.30%
Q3: 45.76%
Median: 29.16%
Q1: 0.00%
Min: 0.00%

EA’s Dividend Payout Ratio of 18.91% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

PANW

0.00%

Software Industry

Max: 1.32%
Q3: 0.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

PANW has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

EA vs. PANW: A comparison of their Dividend Payout Ratio (TTM) against their respective Entertainment and Software industry benchmarks.

Dividend at a Glance

Symbol	EA	PANW
Dividend Yield (TTM)	0.44%	0.00%
Dividend Payout Ratio (TTM)	18.91%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

EA

43.10

Entertainment Industry

Max: 53.51
Q3: 45.31
Median: 33.16
Q1: 18.21
Min: 3.89

EA’s P/E Ratio of 43.10 is within the middle range for the Entertainment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

PANW

94.58

Software Industry

Max: 149.35
Q3: 100.21
Median: 47.97
Q1: 26.77
Min: 11.68

PANW’s P/E Ratio of 94.58 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

EA vs. PANW: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Entertainment and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

EA

6.01

Entertainment Industry

Max: 12.81
Q3: 7.20
Median: 4.68
Q1: 3.32
Min: 0.79

EA’s P/S Ratio of 6.01 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

PANW

13.19

Software Industry

Max: 25.24
Q3: 13.52
Median: 8.15
Q1: 4.87
Min: 0.98

PANW’s P/S Ratio of 13.19 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

EA vs. PANW: A comparison of their Price-to-Sales Ratio (TTM) against their respective Entertainment and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

EA

6.60

Entertainment Industry

Max: 17.11
Q3: 8.38
Median: 5.24
Q1: 2.18
Min: 0.67

EA’s P/B Ratio of 6.60 is within the conventional range for the Entertainment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

PANW

17.12

Software Industry

Max: 30.95
Q3: 14.91
Median: 7.75
Q1: 3.60
Min: 0.38

PANW’s P/B Ratio of 17.12 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

EA vs. PANW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Entertainment and Software industry benchmarks.

Valuation at a Glance

Symbol	EA	PANW
Price-to-Earnings Ratio (TTM)	43.10	94.58
Price-to-Sales Ratio (TTM)	6.01	13.19
Price-to-Book Ratio (MRQ)	6.60	17.12
Price-to-Free Cash Flow Ratio (TTM)	24.17	39.02