PANW vs. CHKP

Last updated Jun 4, 2026

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

Performance

PANW vs. CHKP - Performance Comparison

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

Returns By Period

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

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%

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%

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

PANW vs. CHKP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

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

Fundamentals

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

Return for Risk

PANW vs. CHKP — Risk / Return Rank

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

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

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

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.

PANW vs. CHKP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Palo Alto Networks, Inc. (PANW) and Check Point Software Technologies Ltd. (CHKP). 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.

	PANW	CHKP	Difference
Sharpe ratio Return per unit of total volatility	1.11	-1.08	+2.19
Sortino ratio Return per unit of downside risk	1.59	-1.39	+2.98
Omega ratio Gain probability vs. loss probability	1.21	0.79	+0.42
Calmar ratio Return relative to maximum drawdown	1.18	-0.79	+1.97
Martin ratio Return relative to average drawdown	2.68	-1.58	+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.

PANW vs. CHKP - Sharpe Ratio Comparison

The current PANW Sharpe Ratio is 1.11, which is higher than the CHKP Sharpe Ratio of -1.08. The chart below compares the historical Sharpe Ratios of PANW and CHKP, 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

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

Drawdowns

PANW vs. CHKP - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

PANW vs. CHKP - Volatility Comparison

Palo Alto Networks, Inc. (PANW) has a higher volatility of 16.94% compared to Check Point Software Technologies Ltd. (CHKP) at 9.61%. This indicates that PANW's price experiences larger fluctuations and is considered to be riskier than CHKP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

Dividends

PANW vs. CHKP - Dividend Comparison

Neither PANW nor CHKP has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

PANW vs. CHKP - Profitability Comparison

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

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 - 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 - 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 - 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 - 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%.

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%.

Frequently Asked Questions

Can I hold both PANW and CHKP in my portfolio?

PANW and CHKP 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, PANW or CHKP?

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

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.