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

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

Company Profile

SymbolPANWSOUN
Company NamePalo Alto Networks, Inc.SoundHound AI, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareSoftware
Market Capitalization139.98 billion USD6.52 billion USD
ExchangeNasdaqGSNasdaqGM
Listing DateJuly 20, 2012April 28, 2022
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of PANW and SOUN 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.

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

Historical Performance at a Glance

SymbolPANWSOUN
5-Day Price Return2.27%-9.56%
13-Week Price Return4.67%49.86%
26-Week Price Return18.55%71.43%
52-Week Price Return21.01%236.40%
Month-to-Date Return1.56%23.50%
Year-to-Date Return13.65%-18.95%
10-Day Avg. Volume6.00M75.74M
3-Month Avg. Volume7.05M51.91M
3-Month Volatility32.43%95.71%
Beta0.782.80

Profitability

Return on Equity (TTM)

PANW

16.59%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

PANW’s Return on Equity of 16.59% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

SOUN

-72.90%

Software Industry

Max
66.28%
Q3
21.28%
Median
9.33%
Q1
-8.77%
Min
-48.16%

SOUN has a negative Return on Equity of -72.90%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

PANW vs. SOUN: A comparison of their Return on Equity (TTM) against the Software industry benchmark.

Net Profit Margin (TTM)

PANW

12.30%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

PANW’s Net Profit Margin of 12.30% 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.

SOUN

-171.28%

Software Industry

Max
51.92%
Q3
19.23%
Median
6.98%
Q1
-7.14%
Min
-41.00%

SOUN has a negative Net Profit Margin of -171.28%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

PANW vs. SOUN: A comparison of their Net Profit Margin (TTM) against the Software industry benchmark.

Operating Profit Margin (TTM)

PANW

13.48%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

PANW’s Operating Profit Margin of 13.48% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

SOUN

-183.22%

Software Industry

Max
60.40%
Q3
21.25%
Median
9.90%
Q1
-4.97%
Min
-43.50%

SOUN has a negative Operating Profit Margin of -183.22%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

PANW vs. SOUN: A comparison of their Operating Profit Margin (TTM) against the Software industry benchmark.

Profitability at a Glance

SymbolPANWSOUN
Return on Equity (TTM)16.59%-72.90%
Return on Assets (TTM)5.22%-40.55%
Net Profit Margin (TTM)12.30%-171.28%
Operating Profit Margin (TTM)13.48%-183.22%
Gross Profit Margin (TTM)73.41%40.52%

Financial Strength

Current Ratio (MRQ)

PANW

0.94

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

PANW’s Current Ratio of 0.94 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.

SOUN

4.84

Software Industry

Max
4.29
Q3
2.37
Median
1.40
Q1
1.03
Min
0.25

SOUN’s Current Ratio of 4.84 is exceptionally high, placing it well outside the typical range for the Software industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

PANW vs. SOUN: A comparison of their Current Ratio (MRQ) against the Software industry benchmark.

Debt-to-Equity Ratio (MRQ)

PANW

0.00

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

PANW’s Debt-to-Equity Ratio of 0.00 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.

SOUN

0.00

Software Industry

Max
2.16
Q3
0.86
Median
0.31
Q1
0.00
Min
0.00

SOUN’s Debt-to-Equity Ratio of 0.00 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.

PANW vs. SOUN: A comparison of their Debt-to-Equity Ratio (MRQ) against the Software industry benchmark.

Interest Coverage Ratio (TTM)

PANW

532.90

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

With an Interest Coverage Ratio of 532.90, PANW demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.

SOUN

-93.77

Software Industry

Max
89.65
Q3
32.64
Median
1.00
Q1
-9.84
Min
-71.23

SOUN has a negative Interest Coverage Ratio of -93.77. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

PANW vs. SOUN: A comparison of their Interest Coverage Ratio (TTM) against the Software industry benchmark.

Financial Strength at a Glance

SymbolPANWSOUN
Current Ratio (MRQ)0.944.84
Quick Ratio (MRQ)0.884.84
Debt-to-Equity Ratio (MRQ)0.000.00
Interest Coverage Ratio (TTM)532.90-93.77

Growth

Revenue Growth

PANW vs. SOUN: 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

PANW vs. SOUN: 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)

PANW

0.00%

Software Industry

Max
0.22%
Q3
0.11%
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.

SOUN

0.00%

Software Industry

Max
0.22%
Q3
0.11%
Median
0.00%
Q1
0.00%
Min
0.00%

SOUN 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.

PANW vs. SOUN: A comparison of their Dividend Yield (TTM) against the Software industry benchmark.

Dividend Payout Ratio (TTM)

PANW

0.00%

Software Industry

Max
3.29%
Q3
2.41%
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.

SOUN

0.00%

Software Industry

Max
3.29%
Q3
2.41%
Median
0.00%
Q1
0.00%
Min
0.00%

SOUN 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.

PANW vs. SOUN: A comparison of their Dividend Payout Ratio (TTM) against the Software industry benchmark.

Dividend at a Glance

SymbolPANWSOUN
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

PANW

120.12

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

A P/E Ratio of 120.12 places PANW in the upper quartile for the Software industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

SOUN

--

Software Industry

Max
145.74
Q3
94.88
Median
45.35
Q1
26.66
Min
8.80

P/E Ratio data for SOUN is currently unavailable.

PANW vs. SOUN: A comparison of their Price-to-Earnings Ratio (TTM) against the Software industry benchmark.

Price-to-Sales Ratio (TTM)

PANW

14.77

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

PANW’s P/S Ratio of 14.77 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

SOUN

50.09

Software Industry

Max
25.67
Q3
13.68
Median
8.28
Q1
4.95
Min
0.90

With a P/S Ratio of 50.09, SOUN trades at a valuation that eclipses even the highest in the Software industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

PANW vs. SOUN: A comparison of their Price-to-Sales Ratio (TTM) against the Software industry benchmark.

Price-to-Book Ratio (MRQ)

PANW

14.82

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

PANW’s P/B Ratio of 14.82 is within the conventional range for the Software 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.

SOUN

11.98

Software Industry

Max
30.67
Q3
14.92
Median
8.52
Q1
3.89
Min
0.38

SOUN’s P/B Ratio of 11.98 is within the conventional range for the Software 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 vs. SOUN: A comparison of their Price-to-Book Ratio (MRQ) against the Software industry benchmark.

Valuation at a Glance

SymbolPANWSOUN
Price-to-Earnings Ratio (TTM)120.12--
Price-to-Sales Ratio (TTM)14.7750.09
Price-to-Book Ratio (MRQ)14.8211.98
Price-to-Free Cash Flow Ratio (TTM)45.39--