In the fast-evolving technology sector, Palo Alto Networks, Inc. and Wix.com Ltd. stand out as influential players, each pioneering innovation in software infrastructure. Palo Alto Networks leads in cybersecurity solutions, while Wix empowers users worldwide with cloud-based website creation tools. Both companies address critical digital needs, but with distinct approaches and market focuses. This article will help you decide 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 Wix.com by providing an overview of these two companies and their main differences.
Palo Alto Networks Overview
Palo Alto Networks, Inc. is a leading cybersecurity company focused on providing comprehensive security solutions worldwide. Its offerings include firewall appliances, cloud security, threat intelligence, and professional consulting services. The company targets medium to large enterprises, service providers, and government entities across various industries, positioning itself as a key player in the software infrastructure sector.
Wix.com Overview
Wix.com Ltd. operates a cloud-based platform that enables users to create websites and web applications through visual editing tools and AI-driven features. It serves a global user base with products such as Wix Editor, Wix ADI, and Wix Payments. The company supports millions of premium subscribers and offers a broad range of complementary services, targeting individuals and businesses looking to establish and grow their online presence.
Key similarities and differences
Both companies operate in the software infrastructure industry and focus on cloud-based solutions. Palo Alto Networks specializes in cybersecurity and serves larger enterprises with advanced security products and services, while Wix.com targets a broader market with website creation and business management tools, emphasizing user-friendly platforms for a diverse range of customers. Their business models differ in customer focus and product complexity.
Income Statement Comparison
Below is a side-by-side comparison of the most recent fiscal year income statements for Palo Alto Networks, Inc. and Wix.com Ltd., highlighting key financial metrics.
| Metric | Palo Alto Networks, Inc. | Wix.com Ltd. |
|---|---|---|
| Market Cap | 128.4B | 4.46B |
| Revenue | 9.22B | 1.76B |
| EBITDA | 1.94B | 186M |
| EBIT | 1.60B | 155M |
| Net Income | 1.13B | 138M |
| EPS | 1.71 | 2.49 |
| Fiscal Year | 2025 | 2024 |
Income Statement Interpretations
Palo Alto Networks, Inc.
From 2021 to 2025, Palo Alto Networks demonstrated strong revenue growth, rising from $4.3B to $9.2B, with net income recovering from losses to $1.13B in 2025. Margins, especially gross and EBIT, remained favorable, consistently above 70% and 17% respectively. The latest year showed a solid 14.9% revenue increase but net margin and EPS declined notably, indicating some pressure on profitability despite expanding top-line.
Wix.com Ltd.
Wix’s revenue climbed steadily from $985M in 2020 to $1.76B in 2024, with net income turning positive after losses and reaching $138M. Gross margin stayed favorable near 68%, while EBIT margin was neutral at 8.8%. The company’s latest fiscal year saw robust improvements in EBIT and net margin growth, supported by a 12.7% revenue rise and significant EPS growth, signaling strengthening operating efficiency and profitability.
Which one has the stronger fundamentals?
Both companies exhibit favorable income statement fundamentals with solid revenue and profit growth over the periods analyzed. Palo Alto Networks shows higher margins and a larger market cap, but its recent net margin and EPS contraction contrast with Wix’s consistent improvement across all profitability metrics and EPS growth. Wix also shows a more balanced growth profile with no unfavorable signals, suggesting comparatively steadier earnings expansion.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Palo Alto Networks, Inc. and Wix.com Ltd. based on their most recent fiscal year data.
| Ratios | Palo Alto Networks, Inc. (2025) | Wix.com Ltd. (2024) |
|---|---|---|
| ROE | 14.5% | -1.8% |
| ROIC | 5.7% | 9.1% |
| P/E | 101.4 | 86.2 |
| P/B | 14.7 | -151.4 |
| Current Ratio | 0.89 | 0.84 |
| Quick Ratio | 0.89 | 0.84 |
| D/E (Debt-to-Equity) | 0.04 | -12.3 |
| Debt-to-Assets | 1.4% | 50.7% |
| Interest Coverage | 414.3 | 25.9 |
| Asset Turnover | 0.39 | 0.92 |
| Fixed Asset Turnover | 12.6 | 3.33 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0% | 0% |
Interpretation of the Ratios
Palo Alto Networks, Inc.
Palo Alto Networks shows a mixed ratio profile with favorable net margin (12.3%) and strong interest coverage (532.53), but unfavorable valuation metrics like a high P/E of 101.43 and P/B of 14.7. The current ratio is below 1, indicating liquidity concerns. It does not pay dividends, reflecting a focus on reinvestment and growth rather than shareholder payouts.
Wix.com Ltd.
Wix.com presents a neutral net margin (7.86%) but a deeply negative ROE (-175.57%), signaling profitability challenges. The company has unfavorable debt-to-assets (50.7%) and a low current ratio (0.84), though interest coverage remains favorable at 40.14. Wix also does not pay dividends, likely prioritizing growth investments and R&D over distributions to shareholders.
Which one has the best ratios?
Palo Alto Networks displays a slightly more favorable overall ratio profile, with a better net margin, manageable debt levels, and strong interest coverage, despite high valuation multiples and liquidity issues. Wix’s ratios show greater profitability and leverage concerns, reflected in its negative ROE and higher debt ratio, resulting in a slightly unfavorable global assessment.
Strategic Positioning
This section compares the strategic positioning of Palo Alto Networks, Inc. and Wix.com Ltd., including market position, key segments, and exposure to technological disruption:
Palo Alto Networks, Inc.
- Market leader in cybersecurity with significant market cap and moderate competitive pressure.
- Key segments: cybersecurity products, subscriptions, and support services driving revenue growth.
- Positioned in cybersecurity with evolving cloud security, facing technological shifts in cyber threats.
Wix.com Ltd.
- Smaller market cap, competitive pressure higher due to beta of 1.418.
- Key segments: creative subscriptions and business solutions in cloud web platforms.
- Cloud-based web development platform exposed to rapid innovation in AI and web tech.
Palo Alto Networks vs Wix.com Positioning
Palo Alto Networks focuses on diversified cybersecurity solutions across various industries, while Wix concentrates on cloud-based web development services. PANW’s broader product base contrasts with WIX’s specialized platform offerings, impacting their market dynamics and growth drivers differently.
Which has the best competitive advantage?
Both companies exhibit slightly unfavorable moats, shedding value but with growing ROIC trends. Neither currently achieves a strong economic moat, reflecting challenges in sustaining competitive advantages despite improving profitability.
Stock Comparison
The stock price movements over the past 12 months reveal notable divergence, with Palo Alto Networks showing a significant bullish trend despite recent deceleration, while Wix.com exhibits a pronounced bearish trend marked by substantial price declines.
Trend Analysis
Palo Alto Networks, Inc. (PANW) experienced a strong bullish trend over the past year, with a price increase of 33.05%. This upward momentum shows signs of deceleration, and recent weeks indicate a short-term negative trend with a -14.79% decline. Volatility remains elevated with a standard deviation near 20.
Wix.com Ltd. (WIX) faced a bearish trend, with a 40.28% price drop over the last 12 months. The decline is decelerating but still significant. Recent data show acceleration in the downward trend with a 44.92% fall and higher volatility, as reflected by a standard deviation above 34.
Comparing both companies, Palo Alto Networks delivered the highest market performance, gaining 33.05%, whereas Wix.com declined sharply by over 40%, signaling a clear divergence in investor sentiment and price dynamics.
Target Prices
Below is the consensus target price overview based on reliable analyst data for Palo Alto Networks, Inc. and Wix.com Ltd.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Palo Alto Networks, Inc. | 265 | 157 | 231.07 |
| Wix.com Ltd. | 210 | 70 | 160.27 |
Analysts generally expect both stocks to appreciate, with Palo Alto Networks’ consensus target significantly above its current price of $187.66, while Wix’s target consensus is about double its current price of $80.16, indicating strong upside potential.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Palo Alto Networks, Inc. and Wix.com Ltd.:
Rating Comparison
Palo Alto Networks, Inc. Rating
- Rating: B, indicating a very favorable status overall.
- Discounted Cash Flow Score: 4, favorable, suggesting undervaluation.
- ROE Score: 4, favorable, showing efficient profit generation.
- ROA Score: 3, moderate, effective asset utilization.
- Debt To Equity Score: 4, favorable, low financial risk.
- Overall Score: 3, moderate, solid financial standing.
Wix.com Ltd. Rating
- Rating: C, also considered very favorable overall.
- Discounted Cash Flow Score: 3, moderate, less favorable value.
- ROE Score: 1, very unfavorable, indicating weak equity returns.
- ROA Score: 4, favorable, strong asset efficiency.
- Debt To Equity Score: 1, very unfavorable, high financial risk.
- Overall Score: 2, moderate, weaker financial standing.
Which one is the best rated?
Based strictly on provided data, Palo Alto Networks holds a higher rating (B vs. C) and stronger scores in discounted cash flow, ROE, and debt-to-equity, while Wix excels only in ROA. Overall, Palo Alto Networks is better rated.
Scores Comparison
Here is the comparison of the Altman Z-Score and Piotroski Score for Palo Alto Networks and Wix.com Ltd.:
Palo Alto Networks Scores
- Altman Z-Score: 5.95, indicating a safe zone status.
- Piotroski Score: 6, reflecting an average financial health.
Wix.com Ltd. Scores
- Altman Z-Score: 1.83, placing the company in grey zone.
- Piotroski Score: 6, also reflecting an average financial health.
Which company has the best scores?
Palo Alto Networks shows a significantly stronger Altman Z-Score, indicating better financial stability, while both companies share the same average Piotroski Score. Overall, Palo Alto Networks has the better scores based on the provided data.
Grades Comparison
Here is a comparison of the most recent reliable grades assigned to Palo Alto Networks, Inc. and Wix.com Ltd.:
Palo Alto Networks, Inc. Grades
This table summarizes recent grades and actions from established grading firms 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 generally positive trend with multiple buy and overweight ratings, although one downgrade to reduce was noted.
Wix.com Ltd. Grades
Below is a table presenting recent grades and actions from recognized grading firms for Wix.com Ltd.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Morgan Stanley | Maintain | Overweight | 2026-01-15 |
| Wells Fargo | Maintain | Overweight | 2025-12-19 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-11-20 |
| Citizens | Maintain | Market Outperform | 2025-11-20 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-11-20 |
| Scotiabank | Maintain | Sector Outperform | 2025-11-20 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-20 |
| Needham | Maintain | Buy | 2025-11-20 |
| B. Riley Securities | Maintain | Buy | 2025-11-20 |
Wix.com Ltd. consistently receives strong buy and outperform ratings with all actions maintained, indicating stable positive sentiment.
Which company has the best grades?
Wix.com Ltd. holds generally stronger and more consistent buy and outperform grades compared to Palo Alto Networks, Inc., which shows greater variability including a downgrade. This pattern may influence investors by reflecting higher confidence in Wix.com’s near-term prospects.
Strengths and Weaknesses
Below is a summary table highlighting the key strengths and weaknesses of Palo Alto Networks, Inc. and Wix.com Ltd. based on their recent financial performance and market positioning.
| Criterion | Palo Alto Networks, Inc. (PANW) | Wix.com Ltd. (WIX) |
|---|---|---|
| Diversification | Strong subscription-based model with growing product and support revenue streams | Focused on creative and business subscription solutions; less diversified |
| Profitability | Net margin 12.3% (favorable), ROIC 5.67% (neutral), slightly unfavorable ROIC vs WACC | Net margin 7.86% (neutral), ROIC 9.13% (neutral), slightly unfavorable ROIC vs WACC |
| Innovation | High innovation in cybersecurity with robust product development | Innovative platform for website creation and business solutions, steady growth |
| Global presence | Significant global footprint in cybersecurity markets | Global reach but more niche in website and business solutions |
| Market Share | Leading position in cybersecurity sector but facing competitive pressure | Growing market share in website building but competition intense |
Key takeaways: Both companies face the challenge of currently shedding value as their ROIC is below WACC, though their ROIC trends are positive. Palo Alto Networks excels in profitability and innovation in cybersecurity, while Wix focuses on creative subscriptions with moderate profitability and a narrower market scope. Investors should weigh growth potential against current value destruction risks.
Risk Analysis
Below is a comparative table of key risks for Palo Alto Networks, Inc. (PANW) and Wix.com Ltd. (WIX) based on the most recent data available.
| Metric | Palo Alto Networks, Inc. (PANW) | Wix.com Ltd. (WIX) |
|---|---|---|
| Market Risk | Beta 0.75, moderate volatility | Beta 1.42, higher volatility |
| Debt Level | Low debt-to-equity (0.04), favorable | High debt-to-assets (50.7%), unfavorable |
| Regulatory Risk | Medium, cybersecurity compliance focus | Medium, international data/privacy regulations |
| Operational Risk | Moderate, reliance on subscription services | Moderate, platform stability and user growth challenges |
| Environmental Risk | Low, tech sector typical | Low, tech sector typical |
| Geopolitical Risk | US-based, moderate exposure | Israel-based, moderate exposure |
The most impactful risks are Wix’s high leverage and financial distress risk, as indicated by its debt levels and Altman Z-Score in the grey zone. Palo Alto Networks shows stronger financial stability with low debt and a safe Altman Z-Score but faces valuation risk due to high P/E and P/B ratios. Market volatility is higher for Wix, reflecting greater price fluctuations. Careful risk management is essential, especially for Wix investors given its financial vulnerability.
Which Stock to Choose?
Palo Alto Networks, Inc. (PANW) shows strong income growth with a 116.67% revenue increase over five years and a favorable 85.71% income statement rating. Its profitability is solid with a 12.3% net margin and low debt levels, supported by a very favorable B rating and a slightly favorable financial ratios evaluation.
Wix.com Ltd. (WIX) demonstrates favorable income growth of 78.86% in revenue and a 92.86% favorable income statement rating, but its profitability is more modest with a 7.86% net margin. The company carries higher debt ratios and a very favorable C rating, although its financial ratios evaluation is slightly unfavorable overall.
Investors with a growth orientation might find PANW’s higher profitability and stronger ratings appealing, while those valuing moderate growth with some caution on debt might see WIX as an alternative, considering its mixed ratio evaluations and income growth profile. Both companies show slightly unfavorable economic moats, indicating value destruction despite improving profitability.
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 Wix.com Ltd. to enhance your investment decisions:
