CHKP vs. PANW

Last updated Jun 4, 2026

CHKP (Check Point Software Technologies Ltd.) and PANW (Palo Alto Networks, Inc.) are both stocks. Both operate in the Software - Infrastructure industry within the Technology sector. Over the past 10 years, CHKP returned 4.79%/yr vs 28.26%/yr for PANW. At a 0.45 correlation, their price movements are largely independent.

Performance

CHKP vs. PANW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Check Point Software Technologies Ltd. (CHKP) and Palo Alto Networks, Inc. (PANW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CHKP achieves a -26.88% return, which is significantly lower than PANW's 52.24% return. Over the past 10 years, CHKP has underperformed PANW with an annualized return of 4.79%, while PANW has yielded a comparatively higher 28.26% annualized return.

CHKP

• 1D: -3.13%
• 1M: 16.06%
• YTD: -26.88%
• 6M: -29.00%
• 1Y: -40.98%
• 3Y*: 3.04%
• 5Y*: 2.49%
• 10Y*: 4.79%

PANW

• 1D: -5.64%
• 1M: 51.95%
• YTD: 52.24%
• 6M: 44.83%
• 1Y: 42.26%
• 3Y*: 37.18%
• 5Y*: 36.33%
• 10Y*: 28.26%

*Multi-year figures are annualized to reflect compound growth (CAGR)

CHKP vs. PANW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CHKP Check Point Software Technologies Ltd.	-26.88%	-0.61%	22.19%	21.11%	8.24%	-12.30%	19.78%	8.10%	-0.94%	22.69%
PANW Palo Alto Networks, Inc.	52.24%	1.23%	23.41%	111.32%	-24.81%	56.66%	53.68%	22.78%	29.95%	15.91%

Correlation

The correlation between CHKP and PANW is 0.60, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Jul 23, 2012	0.45

The correlation between CHKP and PANW shifts across timeframes, from 0.45 (all time) to 0.60 (1 year), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap CHKP : $14.40B PANW : $208.64B
EPS CHKP : $9.74 PANW : $1.17
PE Ratio CHKP : 13.93 PANW : 239.15
PEG Ratio CHKP : 1.07 PANW : 0.02
PS Ratio CHKP : 5.35 PANW : 19.00
PB Ratio CHKP : 5.12 PANW : 7.54
Total Revenue (TTM) CHKP : $2.76B PANW : $10.61B
Gross Profit (TTM) CHKP : $2.34B PANW : $7.63B
EBITDA (TTM) CHKP : $965.90M PANW : $1.33B

Return for Risk

CHKP vs. PANW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CHKP

CHKP Risk / Return Rank: 6
CHKP Sharpe Ratio Rank: 3
CHKP Sortino Ratio Rank: 6
CHKP Omega Ratio Rank: 5
CHKP Calmar Ratio Rank: 11
CHKP Martin Ratio Rank: 4

PANW

PANW Risk / Return Rank: 67
PANW Sharpe Ratio Rank: 73
PANW Sortino Ratio Rank: 67
PANW Omega Ratio Rank: 67
PANW Calmar Ratio Rank: 64
PANW Martin Ratio Rank: 64

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CHKP vs. PANW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Check Point Software Technologies Ltd. (CHKP) and Palo Alto Networks, Inc. (PANW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	CHKP	PANW	Difference
Sharpe ratio Return per unit of total volatility	-1.08	1.11	-2.19
Sortino ratio Return per unit of downside risk	-1.39	1.59	-2.98
Omega ratio Gain probability vs. loss probability	0.79	1.21	-0.42
Calmar ratio Return relative to maximum drawdown	-0.79	1.18	-1.97
Martin ratio Return relative to average drawdown	-1.58	2.68	-4.26
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CHKP vs. PANW - Sharpe Ratio Comparison

The current CHKP Sharpe Ratio is -1.08, which is lower than the PANW Sharpe Ratio of 1.11. The chart below compares the historical Sharpe Ratios of CHKP and PANW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CHKP	PANW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.08	1.11	-2.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.09	0.88	-0.79
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.18	0.74	-0.55
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.72	-0.47

Drawdowns

CHKP vs. PANW - Drawdown Comparison

The maximum CHKP drawdown since its inception was -89.31%, which is greater than PANW's maximum drawdown of -47.98%. Use the drawdown chart below to compare losses from any high point for CHKP and PANW.

Drawdown Indicators

	CHKP	PANW	Difference
Max Drawdown Largest peak-to-trough decline	-89.31%	-47.98%	-41.33%
Max Drawdown (1Y) Largest decline over 1 year	-51.83%	-36.01%	-15.82%
Max Drawdown (3Y) Largest decline over 3 years	-51.83%	-36.01%	-15.82%
Max Drawdown (5Y) Largest decline over 5 years	-51.83%	-36.01%	-15.82%
Max Drawdown (10Y) Largest decline over 10 years	-51.83%	-47.98%	-3.85%
Current Drawdown Current decline from peak	-41.89%	-6.67%	-35.22%
Average Drawdown Average peak-to-trough decline	-41.58%	-14.70%	-26.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	25.99%	15.79%	+10.20%

Volatility

CHKP vs. PANW - Volatility Comparison

The current volatility for Check Point Software Technologies Ltd. (CHKP) is 9.61%, while Palo Alto Networks, Inc. (PANW) has a volatility of 16.94%. This indicates that CHKP experiences smaller price fluctuations and is considered to be less risky than PANW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CHKP	PANW	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.61%	16.94%	-7.33%
Volatility (6M) Calculated over the trailing 6-month period	32.43%	31.67%	+0.76%
Volatility (1Y) Calculated over the trailing 1-year period	37.93%	38.39%	-0.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.59%	41.63%	-14.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.04%	38.57%	-12.53%

Dividends

CHKP vs. PANW - Dividend Comparison

Neither CHKP nor PANW has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

CHKP vs. PANW - Profitability Comparison

The chart below illustrates the profitability comparison between Check Point Software Technologies Ltd. and Palo Alto Networks, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

CHKP - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Check Point Software Technologies Ltd. reported a gross profit of 568.30M and revenue of 668.40M. Therefore, the gross margin over that period was 85.0%.

PANW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported a gross profit of 2.03B and revenue of 3.00B. Therefore, the gross margin over that period was 67.6%.

CHKP - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Check Point Software Technologies Ltd. reported an operating income of 185.10M and revenue of 668.40M, resulting in an operating margin of 27.7%.

PANW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported an operating income of -186.00M and revenue of 3.00B, resulting in an operating margin of -6.2%.

CHKP - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Check Point Software Technologies Ltd. reported a net income of 191.60M and revenue of 668.40M, resulting in a net margin of 28.7%.

PANW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported a net income of -177.00M and revenue of 3.00B, resulting in a net margin of -5.9%.

Frequently Asked Questions

Can I hold both CHKP and PANW in my portfolio?

CHKP and PANW have a correlation of 0.60, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CHKP or PANW?

PANW has higher volatility (16.94%) compared to CHKP (9.61%). In terms of maximum drawdown, CHKP dropped -89.31% vs PANW's -47.98%.

Which has better risk-adjusted returns?

PANW currently has the higher Sharpe Ratio (1.11 vs -1.08), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.