In the fast-evolving technology sector, Palo Alto Networks, Inc. (PANW) and Informatica Inc. (INFA) stand out as key players in software infrastructure. Palo Alto Networks leads in cybersecurity innovations, while Informatica specializes in AI-driven data management across multi-cloud environments. Both companies address critical enterprise needs with cutting-edge solutions, making their comparison essential. Join me as we analyze which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Palo Alto Networks and Informatica by providing an overview of these two companies and their main differences.
Palo Alto Networks Overview
Palo Alto Networks, Inc. is a leading cybersecurity provider headquartered in Santa Clara, California. The company offers a comprehensive suite of firewall appliances, software, and subscription services focused on threat prevention, cloud security, and network protection. Serving medium to large enterprises and government entities, Palo Alto Networks is recognized for its innovation in security management solutions and threat intelligence.
Informatica Overview
Informatica Inc., based in Redwood City, California, develops an AI-powered platform for data integration, management, and governance across multi-cloud and hybrid environments. Its product suite includes tools for data quality, API integration, master data management, and regulatory compliance. Informatica serves enterprise customers seeking to unify and optimize their data assets for analytics and business processes.
Key similarities and differences
Both companies operate within the technology sector focusing on software infrastructure, but Palo Alto Networks specializes in cybersecurity solutions, while Informatica centers on data management and integration. Palo Alto Networks targets security for networks and cloud environments, whereas Informatica provides tools to manage and govern data across diverse systems. Their customer bases overlap in enterprise scale but differ in industry needs and core offerings.
Income Statement Comparison
This table presents a side-by-side comparison of the most recent full fiscal year income statement metrics for Palo Alto Networks, Inc. and Informatica Inc., highlighting key financial performance indicators.
| Metric | Palo Alto Networks, Inc. (PANW) | Informatica Inc. (INFA) |
|---|---|---|
| Market Cap | 128.4B | 7.5B |
| Revenue | 9.22B | 1.64B |
| EBITDA | 1.94B | 339M |
| EBIT | 1.60B | 199M |
| Net Income | 1.13B | 9.93M |
| EPS | 1.71 | 0.033 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Palo Alto Networks, Inc.
Palo Alto Networks showed strong revenue growth from $4.3B in 2021 to $9.2B in 2025, with net income improving from a loss of $0.5B to a profit of $1.13B over the same period. Margins mostly improved, with a gross margin of 73.4% and a net margin of 12.3% in 2025. The latest year saw revenue grow 14.9%, but net margin and EPS declined significantly, indicating margin pressure despite top-line strength.
Informatica Inc.
Informatica’s revenue increased steadily from $1.3B in 2020 to $1.64B in 2024, with net income recovering from a loss of $168M to a modest profit of $10M. The company maintained a high gross margin above 80%, though net margin remained low at 0.6%. The most recent year showed slow revenue growth of 2.8%, but strong EBIT and net margin improvements, reflecting better operational efficiency and profitability gains.
Which one has the stronger fundamentals?
Palo Alto Networks demonstrates robust revenue and net income growth, supported by favorable margins and a strong overall income statement evaluation, despite recent margin setbacks. Informatica shows consistent revenue growth with improving profitability but lower net margins and more modest earnings. Overall, Palo Alto exhibits stronger fundamentals in scale and margin quality, while Informatica’s improvements remain more moderate.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Palo Alto Networks, Inc. and Informatica Inc. based on their most recent fiscal year data.
| Ratios | Palo Alto Networks, Inc. (2025) | Informatica Inc. (2024) |
|---|---|---|
| ROE | 14.49% | 0.43% |
| ROIC | 5.67% | 0.56% |
| P/E | 101.4 | 787.9 |
| P/B | 14.70 | 3.39 |
| Current Ratio | 0.89 | 1.82 |
| Quick Ratio | 0.89 | 1.82 |
| D/E | 0.04 | 0.81 |
| Debt-to-Assets | 1.43% | 35.24% |
| Interest Coverage | 414.3 | 0.87 |
| Asset Turnover | 0.39 | 0.31 |
| Fixed Asset Turnover | 12.56 | 8.75 |
| Payout Ratio | 0% | 0.12% |
| Dividend Yield | 0% | 0.00015% |
Interpretation of the Ratios
Palo Alto Networks, Inc.
Palo Alto Networks exhibits a mixed ratio profile with 43% favorable and 36% unfavorable ratios, resulting in a slightly favorable overall evaluation. Key strengths include a strong interest coverage ratio (532.53), low debt levels (debt-to-assets 1.43%), and a favorable weighted average cost of capital (7.37%). Concerns include a low current ratio (0.89) and high price multiples (PE 101.43, PB 14.7), reflecting valuation risks. The company does not pay dividends, prioritizing reinvestment in growth and innovation.
Informatica Inc.
No recent ratio or key metric data is available for Informatica Inc., preventing a detailed financial ratio analysis. The absence of dividend information suggests the company might be in a reinvestment or growth phase, focusing on product development and market expansion rather than distributing returns to shareholders. Without concrete metrics, assessing financial strength or risks remains incomplete.
Which one has the best ratios?
Based on available data, Palo Alto Networks shows a more comprehensive ratio profile with a slight favorable bias despite some valuation and liquidity concerns. Informatica lacks sufficient ratio data for comparison, making Palo Alto Networks the only company with a measurable financial ratio assessment at this time.
Strategic Positioning
This section compares the strategic positioning of Palo Alto Networks and Informatica Inc., including market position, key segments, and exposure to technological disruption:
Palo Alto Networks, Inc.
- Leading cybersecurity provider with strong market cap of 128B, facing moderate competitive pressure.
- Key segments: cybersecurity subscriptions, product sales, and support services driving revenue growth.
- Focused on cybersecurity solutions with ongoing innovation in cloud security and threat intelligence.
Informatica Inc.
- Data management platform with 7.5B market cap, operating in a competitive software infrastructure sector.
- Key segments: AI-powered data integration, subscription services, professional services.
- Focused on AI-powered data management platform with emphasis on multi-cloud, hybrid environments.
Palo Alto Networks, Inc. vs Informatica Inc. Positioning
Palo Alto Networks shows a more concentrated focus on cybersecurity products and subscriptions, leveraging increasing profitability. Informatica operates a diversified AI-driven data management platform across multiple cloud environments, balancing subscription and professional services revenue.
Which has the best competitive advantage?
Based on MOAT evaluation, Palo Alto Networks shows a slightly unfavorable moat with value destruction but improving profitability. Informatica’s moat data is unavailable, limiting direct comparison of competitive advantages.
Stock Comparison
The stock price movements over the past 12 months reveal contrasting trends for Palo Alto Networks, Inc. and Informatica Inc., with notable shifts in momentum and trading dynamics.
Trend Analysis
Palo Alto Networks, Inc. experienced a bullish trend with a 33.05% price increase over the past year, although this growth has decelerated recently amid a 14.79% decline since November 2025. Informatica Inc. showed a bearish trend with a 12.68% price decrease over the same period, but recently stabilized with a neutral 0.08% change. Comparing both, Palo Alto Networks delivered the highest market performance, significantly outperforming Informatica in total price appreciation.
Target Prices
The current analyst consensus suggests a positive outlook for Palo Alto Networks, Inc. and Informatica Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Palo Alto Networks, Inc. | 265 | 157 | 231.07 |
| Informatica Inc. | 27 | 27 | 27 |
For Palo Alto Networks, the consensus target price of 231.07 USD is notably above the current stock price of 187.66 USD, implying upside potential. Informatica’s target price stands firmly at 27 USD, slightly above its present price of 24.79 USD, indicating modest expected gains.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Palo Alto Networks, Inc. and Informatica Inc.:
Rating Comparison
Palo Alto Networks, Inc. Rating
- Rating: B, considered Very Favorable by analysts.
- Discounted Cash Flow Score: 4, indicating a Favorable valuation.
- ROE Score: 4, showing strong profitability efficiency.
- ROA Score: 3, reflecting moderate asset utilization.
- Debt To Equity Score: 4, signaling low financial risk.
- Overall Score: 3, a Moderate overall financial standing.
Informatica Inc. Rating
- No rating data available.
- No data available.
- No data available.
- No data available.
- No data available.
- No data available.
Which one is the best rated?
Based on the available data, Palo Alto Networks, Inc. is the better rated company with a comprehensive set of financial scores and a “B” rating classified as Very Favorable. Informatica Inc. lacks any rating or score data for comparison.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Palo Alto Networks and Informatica Inc.:
Palo Alto Networks Scores
- Altman Z-Score: 5.95, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 6, reflecting average financial strength and value.
Informatica Inc. Scores
- Altman Z-Score: 1.94, placing the company in the grey zone with moderate risk.
- Piotroski Score: 6, reflecting average financial strength and value.
Which company has the best scores?
Palo Alto Networks has a significantly higher Altman Z-Score, placing it in the safe zone, while Informatica is in the grey zone. Both companies share an identical Piotroski Score of 6, indicating average financial health.
Grades Comparison
Here is a detailed comparison of the recent grades for Palo Alto Networks, Inc. and Informatica Inc.:
Palo Alto Networks, Inc. Grades
The table below summarizes the latest grades and rating actions from major grading companies for Palo Alto Networks, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2026-01-13 |
| Piper Sandler | Maintain | Overweight | 2026-01-05 |
| Guggenheim | Upgrade | Neutral | 2026-01-05 |
| Morgan Stanley | Maintain | Overweight | 2025-12-18 |
| Goldman Sachs | Maintain | Buy | 2025-11-21 |
| HSBC | Downgrade | Reduce | 2025-11-21 |
| Needham | Maintain | Buy | 2025-11-20 |
| WestPark Capital | Maintain | Hold | 2025-11-20 |
| Bernstein | Maintain | Outperform | 2025-11-20 |
| DA Davidson | Maintain | Buy | 2025-11-20 |
Overall, Palo Alto Networks shows a strong buy and overweight consensus with mainly stable or upgraded ratings, though one downgrade to reduce by HSBC indicates some caution.
Informatica Inc. Grades
The table below summarizes the latest grades and rating actions from major grading companies for Informatica Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Guggenheim | Downgrade | Neutral | 2025-08-07 |
| UBS | Maintain | Neutral | 2025-08-07 |
| Baird | Maintain | Neutral | 2025-05-28 |
| JP Morgan | Downgrade | Neutral | 2025-05-28 |
| RBC Capital | Maintain | Sector Perform | 2025-05-28 |
| Wolfe Research | Downgrade | Peer Perform | 2025-05-28 |
| Wells Fargo | Maintain | Equal Weight | 2025-05-28 |
| Truist Securities | Downgrade | Hold | 2025-05-28 |
| RBC Capital | Maintain | Sector Perform | 2025-05-27 |
| UBS | Maintain | Neutral | 2025-05-16 |
Informatica’s grades indicate a trend toward neutral and hold ratings, with multiple downgrades and no buy or outperform grades in recent updates.
Which company has the best grades?
Palo Alto Networks holds the better grades with a consensus rating of “Buy” supported by multiple buy and overweight ratings, while Informatica’s consensus is “Hold” with predominantly neutral grades. This suggests Palo Alto Networks is currently viewed more favorably by analysts, which may influence investor confidence and perceived growth potential.
Strengths and Weaknesses
Below is a comparative table highlighting the key strengths and weaknesses of Palo Alto Networks, Inc. (PANW) and Informatica Inc. (INFA) based on the most recent available data.
| Criterion | Palo Alto Networks, Inc. (PANW) | Informatica Inc. (INFA) |
|---|---|---|
| Diversification | Strong product mix: Subscription $4.97B, Support $2.45B, Product $1.80B (2025) | Mainly subscription and professional services; less diversification in revenue streams |
| Profitability | Net margin 12.3%, ROIC 5.67% (slightly below WACC 7.37%) | Data not available for profitability ratios |
| Innovation | High innovation with rapidly growing ROIC (+224% trend) despite current value shedding | Data not available for innovation metrics |
| Global presence | Large global footprint in cybersecurity market | Established presence in data management markets, but less visible data |
| Market Share | Significant share in cybersecurity, supported by strong subscriptions growth | Market share data not available |
Key takeaways: Palo Alto Networks shows strong revenue growth and innovation, especially in subscription services, but is currently shedding value with ROIC below cost of capital. Informatica’s data gaps limit assessment, but it maintains a focused subscription and professional services model. Investors should weigh PANW’s growth potential against its profitability challenges and seek more data on INFA before decision.
Risk Analysis
Below is a comparative risk table for Palo Alto Networks, Inc. (PANW) and Informatica Inc. (INFA) based on the most recent 2025 data.
| Metric | Palo Alto Networks, Inc. (PANW) | Informatica Inc. (INFA) |
|---|---|---|
| Market Risk | Moderate (Beta 0.75, defensive tech sector) | Higher (Beta 1.14, more volatile) |
| Debt Level | Very Low (Debt/Equity 0.04, favorable) | Unknown (data unavailable) |
| Regulatory Risk | Moderate (cybersecurity regulations impact) | Moderate (data privacy & AI regulations) |
| Operational Risk | Moderate (complex global operations) | Moderate (integration of AI platform) |
| Environmental Risk | Low (software industry, limited footprint) | Low (software & cloud services) |
| Geopolitical Risk | Moderate (global cybersecurity demand & threats) | Moderate (US-based but global data operations) |
Palo Alto Networks shows strong financial health with low debt and stable market risk but faces high valuation risks and regulatory scrutiny typical in cybersecurity. Informatica’s risk profile is less clear due to missing financial data but higher market volatility and regulatory challenges around AI and data privacy are notable. The most impactful risk remains regulatory changes affecting both companies’ core businesses.
Which Stock to Choose?
Palo Alto Networks, Inc. (PANW) shows strong income growth with a 116.67% revenue increase and 327.28% net income rise over 2021–2025. Its profitability is favorable, with a 12.3% net margin, supported by mostly favorable financial ratios and a very favorable “B” rating. Debt levels are low and well-covered by interest, though some liquidity ratios are unfavorable.
Informatica Inc. (INFA) exhibits moderate revenue growth of 23.95% and net income growth of 105.92% over 2020–2024, with a neutral net margin of 0.61%. Financial ratio data is incomplete, but its Altman Z-Score places it in a moderate risk “grey zone,” and it holds an average Piotroski score. Debt appears higher relative to earnings, with neutral interest coverage.
Investors prioritizing growth and strong profitability might find Palo Alto Networks’ favorable income trends and ratings appealing, while those with a moderate risk tolerance, seeking steadier earnings and cautious valuation, could interpret Informatica’s profile as more fitting. The choice may depend on individual risk appetite and investment strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Palo Alto Networks, Inc. and Informatica Inc. to enhance your investment decisions:
