PANW vs. STM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at PANW and STM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
PANW is a standard domestic stock, while STM trades as New York Registered Shares, providing U.S. investors with a way to invest in the foreign-based company.
| Symbol | PANW | STM |
|---|---|---|
| Company Name | Palo Alto Networks, Inc. | STMicroelectronics N.V. |
| Country | United States | Netherlands |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | Software | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 123.27 billion USD | 24.39 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | July 20, 2012 | December 8, 1994 |
| Security Type | Common Stock | NY Reg Shrs |
Historical Performance
This chart compares the performance of PANW and STM 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.
Historical Performance at a Glance
| Symbol | PANW | STM |
|---|---|---|
| 5-Day Price Return | 1.65% | 5.40% |
| 13-Week Price Return | -0.85% | 4.81% |
| 26-Week Price Return | -10.06% | -10.79% |
| 52-Week Price Return | 5.61% | -17.66% |
| Month-to-Date Return | 6.31% | 4.79% |
| Year-to-Date Return | 1.42% | -3.07% |
| 10-Day Avg. Volume | 12.20M | 1.96M |
| 3-Month Avg. Volume | 6.91M | 2.56M |
| 3-Month Volatility | 33.77% | 50.46% |
| Beta | 0.98 | 1.38 |
Profitability
Return on Equity (TTM)
PANW
16.59%
Software Industry
- Max
- 59.01%
- Q3
- 21.98%
- Median
- 7.15%
- Q1
- -11.12%
- Min
- -51.24%
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.
STM
10.96%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- Min
- -20.69%
STM’s Return on Equity of 10.96% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
PANW
12.30%
Software Industry
- Max
- 48.14%
- Q3
- 18.23%
- Median
- 5.60%
- Q1
- -9.22%
- Min
- -49.36%
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.
STM
6.92%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
STM’s Net Profit Margin of 6.92% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
PANW
13.48%
Software Industry
- Max
- 57.34%
- Q3
- 20.60%
- Median
- 7.84%
- Q1
- -8.72%
- Min
- -51.37%
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.
STM
5.20%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
STM’s Operating Profit Margin of 5.20% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | PANW | STM |
|---|---|---|
| Return on Equity (TTM) | 16.59% | 10.96% |
| Return on Assets (TTM) | 5.22% | 7.69% |
| Net Profit Margin (TTM) | 12.30% | 6.92% |
| Operating Profit Margin (TTM) | 13.48% | 5.20% |
| Gross Profit Margin (TTM) | 73.41% | 34.89% |
Financial Strength
Current Ratio (MRQ)
PANW
0.94
Software Industry
- Max
- 3.83
- Q3
- 2.31
- Median
- 1.45
- Q1
- 1.03
- Min
- 0.24
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.
STM
2.60
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
STM’s Current Ratio of 2.60 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
PANW
0.00
Software Industry
- Max
- 2.14
- Q3
- 0.90
- Median
- 0.29
- Q1
- 0.00
- Min
- 0.00
PANW’s Debt-to-Equity Ratio of 0.00 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.
STM
0.17
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
STM’s Debt-to-Equity Ratio of 0.17 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
PANW
532.90
Software Industry
- Max
- 67.02
- Q3
- 19.86
- Median
- 0.70
- Q1
- -12.50
- Min
- -53.00
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.
STM
5.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s Interest Coverage Ratio of 5.37 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | PANW | STM |
|---|---|---|
| Current Ratio (MRQ) | 0.94 | 2.60 |
| Quick Ratio (MRQ) | 0.88 | 1.93 |
| Debt-to-Equity Ratio (MRQ) | 0.00 | 0.17 |
| Interest Coverage Ratio (TTM) | 532.90 | 5.37 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
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.
STM
1.23%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
STM’s Dividend Yield of 1.23% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
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.
STM
14.49%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- Q1
- 0.00%
- Min
- 0.00%
STM’s Dividend Payout Ratio of 14.49% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | PANW | STM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.23% |
| Dividend Payout Ratio (TTM) | 0.00% | 14.49% |
Valuation
Price-to-Earnings Ratio (TTM)
PANW
106.88
Software Industry
- Max
- 149.35
- Q3
- 100.21
- Median
- 47.97
- Q1
- 26.77
- Min
- 11.68
A P/E Ratio of 106.88 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.
STM
28.46
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
STM’s P/E Ratio of 28.46 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
PANW
13.14
Software Industry
- Max
- 25.24
- Q3
- 13.52
- Median
- 8.15
- Q1
- 4.87
- Min
- 0.98
PANW’s P/S Ratio of 13.14 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.
STM
1.97
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s P/S Ratio of 1.97 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
PANW
14.79
Software Industry
- Max
- 30.95
- Q3
- 14.91
- Median
- 7.75
- Q1
- 3.60
- Min
- 0.38
PANW’s P/B Ratio of 14.79 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.
STM
1.40
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
STM’s P/B Ratio of 1.40 is in the lower quartile for the Semiconductors & Semiconductor Equipment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | PANW | STM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 106.88 | 28.46 |
| Price-to-Sales Ratio (TTM) | 13.14 | 1.97 |
| Price-to-Book Ratio (MRQ) | 14.79 | 1.40 |
| Price-to-Free Cash Flow Ratio (TTM) | 40.39 | 259.32 |