PANW vs. SHOP: Palo Alto Networks vs. Shopify Stock Comparison
How do Palo Alto Networks (PANW) and Shopify (SHOP) 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
Palo Alto Networks (PANW) and Shopify (SHOP) both fall under the Software & Services industry group, but PANW is classified in Software while SHOP is classified in IT Services.
| Profile Item | PANW | SHOP |
|---|---|---|
| Name | Palo Alto Networks, Inc. | Shopify Inc. |
| Country/Region | United States | Canada |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | IT Services |
| GICS Sub-Industry | Systems Software | Internet Services & Infrastructure |
| Market Capitalization | 330.33 billion USD | 232.57 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | July 20, 2012 | May 20, 2015 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | PANW | SHOP |
|---|---|---|
| Total Return (1Y) | 87.90% | 16.04% |
| Total Return (3Y, Annualized) | 45.65% | 51.23% |
| Total Return (5Y, Annualized) | 36.66% | 4.97% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
Shopify (SHOP) carries a highly aggressive beta of 2.68, indicating much higher sensitivity to broad-market moves, whereas Palo Alto Networks (PANW) is closer to market-like at 0.94 — a noticeable difference in market-sensitivity profile.
| Metric | PANW | SHOP |
|---|---|---|
| Volatility (1Y, Annualized) | 48.13% | 58.56% |
| Beta (5Y) | 0.94 | 2.68 |
| Max Drawdown (5Y) | -36.01% | -84.82% |
| Avg. Volume (3M) | 5.97M | 9.43M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | PANW | SHOP |
|---|---|---|
| Sharpe Ratio (1Y) | 1.73 | 0.20 |
| Sortino Ratio (1Y) | 2.81 | 0.29 |
Profitability
ROE (TTM)
Both Palo Alto Networks (PANW) at 1.74% and Shopify (SHOP) at 15.54% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
PANW
Software & Services industry group
1.74%
- Max
- 62.27%
- Q3
- 18.32%
- Median
- 5.48%
- PANW
- 1.74%
- Q1
- -13.62%
- Min
- -59.77%
SHOP
Software & Services industry group
15.54%
- Max
- 62.27%
- Q3
- 18.32%
- SHOP
- 15.54%
- Median
- 5.48%
- Q1
- -13.62%
- Min
- -59.77%
Net Margin (TTM)
Both Palo Alto Networks (PANW) at 2.67% and Shopify (SHOP) at 14.53% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
PANW
Software & Services industry group
2.67%
- Max
- 41.43%
- Q3
- 14.96%
- Median
- 4.26%
- PANW
- 2.67%
- Q1
- -5.85%
- Min
- -30.95%
SHOP
Software & Services industry group
14.53%
- Max
- 41.43%
- Q3
- 14.96%
- SHOP
- 14.53%
- Median
- 4.26%
- Q1
- -5.85%
- Min
- -30.95%
Operating Margin (TTM)
Shopify (SHOP) at 17.56% operates in the top operating margin quartile, ahead of Palo Alto Networks (PANW) at 5.40%, which runs around its industry’s norm.
PANW
Software & Services industry group
5.40%
- Max
- 47.12%
- Q3
- 15.51%
- PANW
- 5.40%
- Median
- 4.87%
- Q1
- -6.45%
- Min
- -39.13%
SHOP
Software & Services industry group
17.56%
- Max
- 47.12%
- SHOP
- 17.56%
- Q3
- 15.51%
- Median
- 4.87%
- Q1
- -6.45%
- Min
- -39.13%
Profitability Metrics
| Metric | PANW | SHOP |
|---|---|---|
| ROE (TTM) | 1.74% | 15.54% |
| ROA (TTM) | 1.40% | 10.19% |
| Net Margin (TTM) | 2.67% | 14.53% |
| Operating Margin (TTM) | 5.40% | 17.56% |
| Gross Margin (TTM) | 70.38% | 47.77% |
Growth
Revenue Growth
Shopify (SHOP) at 30.14% sits in the top revenue growth quartile, while Palo Alto Networks (PANW) at 24.50% is closer to the peer norm — faster top-line expansion for SHOP.
EPS Growth
Shopify (SHOP) at -39.47% 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 | PANW | SHOP |
|---|---|---|
| Revenue Growth (YoY) | 24.50% | 30.14% |
| Revenue Growth (3Y CAGR) | 18.54% | 27.31% |
| EPS Growth (YoY) | -75.00% | -39.47% |
| EPS Growth (3Y CAGR) | -14.50% | -- |
Financial Strength
Current Ratio (MRQ)
Shopify (SHOP) at 5.35 carries current ratio above its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.87 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
PANW
Software & Services industry group
0.87
- Max
- 5.11
- Q3
- 2.74
- Median
- 1.63
- Q1
- 1.02
- PANW
- 0.87
- Min
- 0.03
SHOP
Software & Services industry group
5.35
- SHOP
- 5.35
- Max
- 5.11
- Q3
- 2.74
- Median
- 1.63
- Q1
- 1.02
- Min
- 0.03
Debt / Equity (MRQ)
Shopify (SHOP) at 0.01 keeps leverage in the lower industry quartile, while Palo Alto Networks (PANW) at 0.09 runs a more typical debt-to-equity mix.
PANW
Software & Services industry group
0.09
- Max
- 2.52
- Q3
- 1.10
- Median
- 0.35
- PANW
- 0.09
- Q1
- 0.06
- Min
- 0.00
SHOP
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.10
- Median
- 0.35
- Q1
- 0.06
- SHOP
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | PANW | SHOP |
|---|---|---|
| Current Ratio (MRQ) | 0.87 | 5.35 |
| Debt / Equity (MRQ) | 0.09 | 0.01 |
| Net Debt / EBITDA | -0.32 | -1.99 |
Dividends
Dividend Yield (TTM)
Neither Palo Alto Networks (PANW) nor Shopify (SHOP) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
SHOP
Software & Services industry group
0.00%
- SHOP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Palo Alto Networks (PANW) nor Shopify (SHOP) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
SHOP
Software & Services industry group
0.00%
- SHOP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | PANW | SHOP |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Both look expensive on trailing earnings: Shopify (SHOP) at 121.09 sits in the richer P/E ratio quartile, and Palo Alto Networks (PANW) at 1,009.57 is richer still, above its industry range.
PANW
Software & Services industry group
1,009.57
- PANW
- 1,009.57
- Max
- 121.09
- Q3
- 60.42
- Median
- 31.84
- Q1
- 17.70
- Min
- 6.45
SHOP
Software & Services industry group
121.09
- SHOP
- 121.09
- Max
- 121.09
- Q3
- 60.42
- Median
- 31.84
- Q1
- 17.70
- Min
- 6.45
P/S Ratio (TTM)
Both look expensive on sales: Shopify (SHOP) at 17.53 sits in the upper P/S ratio quartile, and Palo Alto Networks (PANW) at 28.77 prices even higher, above its industry range.
PANW
Software & Services industry group
28.77
- PANW
- 28.77
- Max
- 19.98
- Q3
- 9.41
- Median
- 4.36
- Q1
- 2.30
- Min
- 0.02
SHOP
Software & Services industry group
17.53
- Max
- 19.98
- SHOP
- 17.53
- Q3
- 9.41
- Median
- 4.36
- Q1
- 2.30
- Min
- 0.02
P/B Ratio (MRQ)
Both Palo Alto Networks (PANW) at 11.97 and Shopify (SHOP) at 18.22 carry a premium to book value versus peers, sitting in the upper P/B ratio quartile of their industries.
PANW
Software & Services industry group
11.97
- Max
- 19.30
- PANW
- 11.97
- Q3
- 9.10
- Median
- 4.43
- Q1
- 1.98
- Min
- -3.90
SHOP
Software & Services industry group
18.22
- Max
- 19.30
- SHOP
- 18.22
- Q3
- 9.10
- Median
- 4.43
- Q1
- 1.98
- Min
- -3.90
Valuation Metrics
| Metric | PANW | SHOP |
|---|---|---|
| P/E Ratio (TTM) | 1,009.57 | 121.09 |
| P/S Ratio (TTM) | 28.77 | 17.53 |
| P/B Ratio (MRQ) | 11.97 | 18.22 |
| Free Cash Flow Yield (TTM) | 1.28% | 0.68% |