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PANW vs S
Which Stock Would AI Choose? Palo Alto Networks (PANW) vs. SentinelOne (S) Stock Comparison
Key Takeaways
- PANW is a much larger, profitable platform vendor, while S is a smaller, faster-growing but still unprofitable challenger focused on AI-native endpoint security.
- Palo Alto Networks is scaling through platform consolidation and acquisitions, whereas SentinelOne is investing for growth while prioritizing margin expansion.
- PANW trades at a steep valuation multiple; S carries a lower multiple but lacks GAAP profitability.
- Both stocks have rallied sharply in 2026, but their relative performance has diverged in recent weeks.
- Momentum, scale, and profitability currently favor PANW, while S offers a different risk-reward profile for growth-oriented investors.
Introduction
Cybersecurity remains one of the most closely watched segments of the technology sector as artificial intelligence reshapes both the threat landscape and the tools used to defend against it. This comparison examines two publicly traded names operating at opposite ends of that spectrum: Palo Alto Networks (PANW), an established platform leader, and SentinelOne (S), a smaller AI-native disruptor. For traders and investors weighing relative performance, market positioning, and risk factors, understanding how these two stocks behave under current market conditions can help clarify where momentum, stability, and growth potential currently reside.
PANW Overview and Recent Performance
Palo Alto Networks is a platform-based cybersecurity vendor spanning network security, cloud security, and security operations, with more than 80,000 enterprise customers. The company has made "platformization" its central strategy, consolidating multiple point solutions into unified offerings. Recent fiscal results reflected that momentum: fourth-quarter revenue rose 34% year over year to $3.41 billion, while next-generation security (NGS) annual recurring revenue (ARR, the annualized value of subscription contracts) climbed 63% to $9.1 billion. Total remaining performance obligations (RPO, contracted future revenue not yet recognized) reached $21.2 billion, up 34%.
Two acquisitions have reshaped the business in recent months: observability provider Chronosphere and identity-security leader CyberArk, now rebranded as Idira. In recent weeks, PANW shares have traded near record highs, and several analysts have raised price targets, citing AI-driven demand. That strong run has also lifted valuation, with the stock trading at a forward price-to-earnings (P/E) multiple well above the broader market, leaving limited room for error.
S Overview and Recent Performance
SentinelOne provides an AI-powered cybersecurity platform centered on its Singularity offering, which automates threat prevention, detection, and response across endpoints, cloud workloads, and identities. Its core differentiator is a fully automated, "extended detection and response" (XDR, a security approach that correlates data across an organization's environment) model designed to reduce reliance on human analysts. The company is far smaller than its larger peers, with a market capitalization under $10 billion, and it has not yet achieved GAAP (Generally Accepted Accounting Principles) profitability.
Recent financial results showed steady, decelerating growth. Second-quarter revenue rose roughly 21% year over year to $292 million, and ARR grew about 22% to $1.22 billion. Adjusted operating margin expanded by about 800 basis points (a basis point is one-hundredth of a percentage point), reflecting improved cost discipline. In recent weeks, S shares have advanced but remain below their all-time highs, with sentiment divided between enthusiasm for AI security demand and concerns about decelerating growth and competitive pressure from larger vendors.
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Head-to-Head Comparison
The two companies differ sharply in business model and scale. Palo Alto Networks generates multi-billion-dollar quarterly revenue, is profitable on a non-GAAP (non-GAAP meaning adjusted for certain non-cash or one-time items) basis, and uses acquisitions to expand its platform footprint. SentinelOne operates at roughly one-tenth the revenue scale, remains unprofitable under GAAP, and competes by emphasizing its AI-native architecture and automated approach.
On valuation, PANW trades at a premium forward price-to-sales (P/S) ratio and an elevated forward P/E, reflecting its profitability and platform dominance. S trades at a materially lower P/S multiple, which some investors view as an entry point relative to peers, but it carries execution risk as growth decelerates. In terms of momentum, both have benefited from AI-security tailwinds, though PANW has shown more consistent relative strength near its highs, while S has displayed greater volatility.
Risk profiles also diverge. Palo Alto Networks faces pressure on gross margins as it shifts toward cloud and software offerings, plus integration risk from acquisitions. SentinelOne confronts intense competition from larger rivals and the challenge of converting growth into sustainable profitability.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative strength, profitability, and scale, Tickeron's AI would likely favor PANW in the current environment. The stock's combination of accelerating recurring-revenue growth, a large contracted backlog, and sustained analyst support points to more stable positioning, even if its valuation leaves less margin for error. S offers an attractive growth narrative and improving margins, but its smaller scale, lack of GAAP profitability, and more volatile price action suggest a comparatively less consistent trend profile. This assessment is probabilistic and reflects current market conditions rather than a definitive prediction of future returns.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is PANW is a Hold and S is a Hold.
PANW in -8.81% downward trend, declining for three consecutive days on October 16, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where PANW declined for three days, in 181 of 268 cases, the price declined further within the following month. The odds of a continued downward trend are 68%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for PANW moved out of overbought territory on October 07, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 25 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 64%.
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PANW as a result. In 52 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 67%.
The Moving Average Convergence Divergence Histogram (MACD) for PANW turned negative on October 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 29 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 64%.
PANW moved below its 50-day moving average on October 15, 2026 date and that indicates a change from an upward trend to a downward trend.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for PANW crossed bullishly above the 50-day moving average on September 18, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.
Following a +4.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where PANW advanced for three days, in 271 of 353 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
PANW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 201 of 276 cases where PANW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 73%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 1 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. PANW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.323) is normal, around the industry mean (15.427). PANW has a moderately high P/E Ratio (846.219) as compared to the industry average of (54.308). Projected Growth (PEG Ratio) (2.002) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.213) among similar stocks. P/S Ratio (25.000) is also within normal values, averaging (103.889).
S's RSI Oscillator peaks and leaves overbought zone
The 10-day RSI Indicator for S moved out of overbought territory on October 12, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 23 instances where the indicator moved out of the overbought zone. In 21 of the 23 cases the stock moved lower in the days that followed. This puts the odds of a move down at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on S as a result. In 76 of 99 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
The Moving Average Convergence Divergence Histogram (MACD) for S turned negative on October 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 37 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
S moved below its 50-day moving average on October 16, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where S declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +3.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where S advanced for three days, in 225 of 295 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
S may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 161 of 209 cases where S Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 77%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 21 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.185) is normal, around the industry mean (15.427). P/E Ratio (-21.157) is within average values for comparable stocks, (54.308). Projected Growth (PEG Ratio) (0.010) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.213) among similar stocks. P/S Ratio (7.067) is also within normal values, averaging (103.889).
The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. S’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 96 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. S’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
PANW | S | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 23 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 100 Overvalued | 21 Undervalued | |
PROFIT vs RISK RATING 1..100 | 7 | 100 | |
SMR RATING 1..100 | 89 | 96 | |
PRICE GROWTH RATING 1..100 | 37 | 40 | |
P/E GROWTH RATING 1..100 | 1 | 29 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
S's Valuation (21) in the Wireless Telecommunications industry is significantly better than the same rating for PANW (100) in the Computer Communications industry. This means that S’s stock grew significantly faster than PANW’s over the last 12 months.
PANW's Profit vs Risk Rating (7) in the Computer Communications industry is significantly better than the same rating for S (100) in the Wireless Telecommunications industry. This means that PANW’s stock grew significantly faster than S’s over the last 12 months.
PANW's SMR Rating (89) in the Computer Communications industry is in the same range as S (96) in the Wireless Telecommunications industry. This means that PANW’s stock grew similarly to S’s over the last 12 months.
PANW's Price Growth Rating (37) in the Computer Communications industry is in the same range as S (40) in the Wireless Telecommunications industry. This means that PANW’s stock grew similarly to S’s over the last 12 months.
PANW's P/E Growth Rating (1) in the Computer Communications industry is in the same range as S (29) in the Wireless Telecommunications industry. This means that PANW’s stock grew similarly to S’s over the last 12 months.
| PANW | S | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 64% | 4 days ago 90% |
| Stochastic ODDS (%) | 4 days ago 85% | 4 days ago 76% |
| Momentum ODDS (%) | 4 days ago 67% | 4 days ago 77% |
| MACD ODDS (%) | 4 days ago 64% | 4 days ago 76% |
| TrendWeek ODDS (%) | 4 days ago 65% | 4 days ago 78% |
| TrendMonth ODDS (%) | 4 days ago 61% | 4 days ago 75% |
| Advances ODDS (%) | 14 days ago 77% | 11 days ago 76% |
| Declines ODDS (%) | 4 days ago 68% | 6 days ago 78% |
| BollingerBands ODDS (%) | 4 days ago 82% | 4 days ago 84% |
| Aroon ODDS (%) | 4 days ago 73% | 4 days ago 77% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
PANW’s FA Score shows that 2 FA rating(s) are green while S’s FA Score has 2 green FA rating(s).
- PANW’s FA Score: 2 green, 3 red.
- S’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
PANW’s TA Score shows that 5 TA indicator(s) are bullish while S’s TA Score has 4 bullish TA indicator(s).
- PANW’s TA Score: 5 bullish, 5 bearish.
- S’s TA Score: 4 bullish, 5 bearish.
Price Growth
PANW (@Computer Communications) experienced а -14.09% price change this week, while S (@Computer Communications) price change was -17.85% for the same time period.
The average weekly price growth across all stocks in the @Computer Communications industry was -6.42%. For the same industry, the average monthly price growth was -9.38%, and the average quarterly price growth was -1.31%.
Reported Earning Dates
PANW is expected to report earnings on Nov 12, 2026.
S is expected to report earnings on Dec 08, 2026.
Industries' Descriptions
@Computer Communications (-6.42% weekly)Computer communications industry develops technology that allows computing devices to exchange data with each other using connections/data links between nodes. Common types of computer network include Cloud (IAN), Internet, Wide (WAN, Local (LAN)/Wireless(WLAN) etc. The industry is an ever-more important part of technology, and is set to become even bigger as the Internet of Things (IoT) rapidly forays into the various aspects of our lives. Cisco Systems, Inc., Palo Alto Networks, Inc. and Arista Networks, Inc., Fortinet, Inc. are some of the major computer communications companies.
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