SPSC vs. PANW

Last updated Jun 4, 2026

SPSC (SPS Commerce, Inc.) 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, SPSC returned 6.83%/yr vs 28.26%/yr for PANW. At a 0.41 correlation, their price movements are largely independent.

Performance

SPSC vs. PANW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPS Commerce, Inc. (SPSC) 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, SPSC achieves a -37.68% return, which is significantly lower than PANW's 52.24% return. Over the past 10 years, SPSC has underperformed PANW with an annualized return of 6.83%, while PANW has yielded a comparatively higher 28.26% annualized return.

SPSC

• 1D: -3.89%
• 1M: -5.11%
• YTD: -37.68%
• 6M: -33.47%
• 1Y: -60.92%
• 3Y*: -30.11%
• 5Y*: -10.09%
• 10Y*: 6.83%

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)

SPSC vs. PANW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPSC SPS Commerce, Inc.	-37.68%	-51.56%	-5.08%	50.93%	-9.78%	31.09%	95.94%	34.55%	69.54%	-30.48%
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 SPSC and PANW is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.46
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	0.41

Fundamentals

Market Cap SPSC : $2.08B PANW : $208.64B
EPS SPSC : $2.40 PANW : $1.17
PE Ratio SPSC : 23.12 PANW : 239.15
PEG Ratio SPSC : 1.24 PANW : 0.02
PS Ratio SPSC : 2.76 PANW : 19.00
PB Ratio SPSC : 2.16 PANW : 7.54
Total Revenue (TTM) SPSC : $762.08M PANW : $10.61B
Gross Profit (TTM) SPSC : $518.57M PANW : $7.63B
EBITDA (TTM) SPSC : $164.17M PANW : $1.33B

Return for Risk

SPSC vs. PANW — Risk / Return Rank

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

SPSC

SPSC Risk / Return Rank: 3
SPSC Sharpe Ratio Rank: 1
SPSC Sortino Ratio Rank: 3
SPSC Omega Ratio Rank: 2
SPSC Calmar Ratio Rank: 4
SPSC Martin Ratio Rank: 6

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.

SPSC vs. PANW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPS Commerce, Inc. (SPSC) 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.

	SPSC	PANW	Difference
Sharpe ratio Return per unit of total volatility	-1.26	1.11	-2.37
Sortino ratio Return per unit of downside risk	-1.93	1.59	-3.52
Omega ratio Gain probability vs. loss probability	0.72	1.21	-0.49
Calmar ratio Return relative to maximum drawdown	-0.93	1.18	-2.11
Martin ratio Return relative to average drawdown	-1.45	2.68	-4.13
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SPSC vs. PANW - Sharpe Ratio Comparison

The current SPSC Sharpe Ratio is -1.26, which is lower than the PANW Sharpe Ratio of 1.11. The chart below compares the historical Sharpe Ratios of SPSC 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

	SPSC	PANW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-1.26	1.11	-2.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.26	0.88	-1.13
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	0.37	0.72	-0.35

Drawdowns

SPSC vs. PANW - Drawdown Comparison

The maximum SPSC drawdown since its inception was -76.83%, which is greater than PANW's maximum drawdown of -47.98%. Use the drawdown chart below to compare losses from any high point for SPSC and PANW.

Drawdown Indicators

	SPSC	PANW	Difference
Max Drawdown Largest peak-to-trough decline	-76.83%	-47.98%	-28.85%
Max Drawdown (1Y) Largest decline over 1 year	-65.58%	-36.01%	-29.57%
Max Drawdown (3Y) Largest decline over 3 years	-76.83%	-36.01%	-40.82%
Max Drawdown (5Y) Largest decline over 5 years	-76.83%	-36.01%	-40.82%
Max Drawdown (10Y) Largest decline over 10 years	-76.83%	-47.98%	-28.85%
Current Drawdown Current decline from peak	-74.21%	-6.67%	-67.54%
Average Drawdown Average peak-to-trough decline	-17.10%	-14.70%	-2.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	42.04%	15.79%	+26.25%

Volatility

SPSC vs. PANW - Volatility Comparison

The current volatility for SPS Commerce, Inc. (SPSC) is 14.55%, while Palo Alto Networks, Inc. (PANW) has a volatility of 16.94%. This indicates that SPSC 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

	SPSC	PANW	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.55%	16.94%	-2.39%
Volatility (6M) Calculated over the trailing 6-month period	30.77%	31.67%	-0.90%
Volatility (1Y) Calculated over the trailing 1-year period	48.53%	38.39%	+10.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	39.63%	41.63%	-2.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.46%	38.57%	-1.11%

Dividends

SPSC vs. PANW - Dividend Comparison

Neither SPSC nor PANW has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

SPSC vs. PANW - Profitability Comparison

The chart below illustrates the profitability comparison between SPS Commerce, Inc. and Palo Alto Networks, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

SPSC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, SPS Commerce, Inc. reported a gross profit of 132.90M and revenue of 192.12M. Therefore, the gross margin over that period was 69.2%.

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%.

SPSC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, SPS Commerce, Inc. reported an operating income of 24.56M and revenue of 192.12M, resulting in an operating margin of 12.8%.

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%.

SPSC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, SPS Commerce, Inc. reported a net income of 19.73M and revenue of 192.12M, resulting in a net margin of 10.3%.

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 SPSC and PANW in my portfolio?

SPSC and PANW have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPSC or PANW?

PANW has higher volatility (16.94%) compared to SPSC (14.55%). In terms of maximum drawdown, SPSC dropped -76.83% vs PANW's -47.98%.

Which has better risk-adjusted returns?

PANW currently has the higher Sharpe Ratio (1.11 vs -1.26), 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.