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PANW vs. WDAY: Palo Alto Networks vs. Workday Stock Comparison

How do Palo Alto Networks (PANW) and Workday (WDAY) 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 Workday (WDAY) both belong to the Software industry, though PANW is classified under Systems Software while WDAY falls under Application Software.

Company profile comparison for Palo Alto Networks (PANW) and Workday (WDAY)
Profile ItemPANWWDAY
NamePalo Alto Networks, Inc.Workday Inc Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization256.86 billion USD46.49 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJuly 20, 2012October 12, 2012
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

PANW
WDAY
GSPC
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Palo Alto Networks (PANW) vs. Workday (WDAY), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Palo Alto Networks (PANW) and Workday (WDAY). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Palo Alto Networks (PANW) and Workday (WDAY). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Palo Alto Networks (PANW) and Workday (WDAY)
MetricPANWWDAY
Total Return (1Y)53.99%-14.74%
Total Return (3Y, Annualized)39.16%-5.22%
Total Return (5Y, Annualized)30.80%-8.14%

Risk Profile

Drawdown History

PANW
WDAY
GSPC
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Palo Alto Networks (PANW) vs. Workday (WDAY), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Palo Alto Networks (PANW) and Workday (WDAY). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Palo Alto Networks (PANW) and Workday (WDAY)
MetricPANWWDAY
Volatility (1Y, Annualized)51.34%54.35%
Beta (5Y)1.001.01
Max Drawdown (5Y)-36.01%-63.38%
Avg. Volume (3M)6.03M3.14M

Risk-Adjusted Performance

Risk-Return Positioning

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PANW and WDAY are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Palo Alto Networks (PANW) and Workday (WDAY)
MetricPANWWDAY
Sharpe Ratio (1Y)0.97-0.35
Sortino Ratio (1Y)1.49-0.54

Profitability

ROE (TTM)

Both Palo Alto Networks (PANW) at 1.74% and Workday (WDAY) at 16.01% 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
53.85%
Q3
17.90%
Median
6.59%
PANW
1.74%
Q1
-9.59%
Min
-50.52%

WDAY

Software & Services industry group

16.01%

Max
53.85%
Q3
17.90%
WDAY
16.01%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Both Palo Alto Networks (PANW) at 2.67% and Workday (WDAY) at 12.32% 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
41.17%
Q3
15.28%
Median
4.63%
PANW
2.67%
Q1
-5.42%
Min
-33.17%

WDAY

Software & Services industry group

12.32%

Max
41.17%
Q3
15.28%
WDAY
12.32%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Palo Alto Networks (PANW) at 5.40% and Workday (WDAY) at 11.82% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

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%

WDAY

Software & Services industry group

11.82%

Max
46.89%
Q3
17.64%
WDAY
11.82%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Palo Alto Networks (PANW) and Workday (WDAY)
MetricPANWWDAY
ROE (TTM)1.74%16.01%
ROA (TTM)1.40%4.51%
Net Margin (TTM)2.67%12.32%
Operating Margin (TTM)5.40%11.82%
Gross Margin (TTM)70.38%75.80%

Growth

Revenue Growth

Both Palo Alto Networks (PANW) at 24.50% and Workday (WDAY) at 13.10% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their Revenue Growth across different time periods.

EPS Growth

Workday (WDAY) at 32.82% 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.

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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Palo Alto Networks (PANW) and Workday (WDAY)
MetricPANWWDAY
Revenue Growth (YoY)24.50%13.10%
Revenue Growth (3Y CAGR)18.54%15.40%
EPS Growth (YoY)-75.00%32.82%
EPS Growth (3Y CAGR)-14.50%--

Financial Strength

Current Ratio (MRQ)

Both Palo Alto Networks (PANW) at 0.87 and Workday (WDAY) at 0.91 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

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

WDAY

Software & Services industry group

0.91

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
WDAY
0.91
Min
0.03
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Palo Alto Networks (PANW) at 0.09 and Workday (WDAY) at 0.58 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

WDAY

Software & Services industry group

0.58

Max
2.52
Q3
1.13
WDAY
0.58
Median
0.40
Q1
0.07
Min
0.00
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Palo Alto Networks (PANW) and Workday (WDAY)
MetricPANWWDAY
Current Ratio (MRQ)0.870.91
Debt / Equity (MRQ)0.090.58
Net Debt / EBITDA-0.320.23

Dividends

Dividend Yield (TTM)

Neither Palo Alto Networks (PANW) nor Workday (WDAY) 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%

WDAY

Software & Services industry group

0.00%

WDAY
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Palo Alto Networks (PANW) nor Workday (WDAY) 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%

WDAY

Software & Services industry group

0.00%

WDAY
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Palo Alto Networks (PANW) and Workday (WDAY)
MetricPANWWDAY
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Workday (WDAY) at 39.29 is near its industry’s usual P/E ratio, while Palo Alto Networks (PANW) at 784.60 sits above its peer range — an unusually expensive price for PANW’s trailing earnings.

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

WDAY

Software & Services industry group

39.29

Max
112.94
Q3
60.32
WDAY
39.29
Median
32.91
Q1
18.77
Min
6.69
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Workday (WDAY) at 4.58 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.

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

WDAY

Software & Services industry group

4.58

Max
17.91
Q3
8.78
WDAY
4.58
Median
4.25
Q1
2.23
Min
0.02
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Workday (WDAY) at 7.20 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.

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

WDAY

Software & Services industry group

7.20

Max
16.63
Q3
8.50
WDAY
7.20
Median
4.30
Q1
1.92
Min
-3.90
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Palo Alto Networks (PANW) vs. Workday (WDAY): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Palo Alto Networks (PANW) and Workday (WDAY)
MetricPANWWDAY
P/E Ratio (TTM)784.6039.29
P/S Ratio (TTM)22.374.58
P/B Ratio (MRQ)9.307.20
Free Cash Flow Yield (TTM)1.65%6.55%