Seek Returns

MSFT vs. NET: Microsoft vs. Cloudflare Stock Comparison

How do Microsoft (MSFT) and Cloudflare (NET) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Microsoft (MSFT) and Cloudflare (NET) both fall under the Software & Services industry group, but MSFT is classified in Software while NET is classified in IT Services.

Company profile comparison for Microsoft (MSFT) and Cloudflare (NET)
Profile ItemMSFTNET
NameMicrosoft Corporation Common StockCloudflare, Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareIT Services
GICS Sub-IndustrySystems SoftwareInternet Services & Infrastructure
Market Capitalization3,940.41 billion USD96.32 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateMarch 13, 1986September 13, 2019
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
NET
GSPC
Loading price history…
Microsoft (MSFT) vs. Cloudflare (NET), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Microsoft (MSFT) and Cloudflare (NET). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Microsoft (MSFT) and Cloudflare (NET). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Cloudflare (NET)
MetricMSFTNET
Total Return (1Y)10.30%27.13%
Total Return (3Y, Annualized)15.53%68.21%
Total Return (5Y, Annualized)11.01%7.66%

Risk Profile

Drawdown History

MSFT
NET
GSPC
Loading price history…
Microsoft (MSFT) vs. Cloudflare (NET), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…
Distribution of monthly total returns for Microsoft (MSFT) and Cloudflare (NET). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Cloudflare (NET)
MetricMSFTNET
Volatility (1Y, Annualized)33.91%67.16%
Beta (5Y)1.031.34
Max Drawdown (5Y)-37.15%-82.58%
Avg. Volume (3M)22.95M3.45M

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
MSFT and NET are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Microsoft (MSFT) and Cloudflare (NET)
MetricMSFTNET
Sharpe Ratio (1Y)0.180.34
Sortino Ratio (1Y)0.280.48

Profitability

ROE (TTM)

Cloudflare (NET) reports a negative ROE of -17.00%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Microsoft (MSFT) reports 34.22%, ranking against industry peers normally.

MSFT

Software & Services industry group

34.22%

Max
53.85%
MSFT
34.22%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%

NET

Software & Services industry group

-17.00%

Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
NET
-17.00%
Min
-50.52%
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Cloudflare (NET) reports a negative net margin of -8.75%, usually indicating a net loss over the period. Meanwhile Microsoft (MSFT) reports 41.17%, ranking against industry peers normally.

MSFT

Software & Services industry group

41.17%

MSFT
41.17%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%

NET

Software & Services industry group

-8.75%

Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
NET
-8.75%
Min
-33.17%
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Cloudflare (NET) reports a negative operating margin of -7.27%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Microsoft (MSFT) reports 49.76%, ranking against industry peers normally.

MSFT

Software & Services industry group

49.76%

MSFT
49.76%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%

NET

Software & Services industry group

-7.27%

Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
NET
-7.27%
Min
-30.45%
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Cloudflare (NET)
MetricMSFTNET
ROE (TTM)34.22%-17.00%
ROA (TTM)14.41%-2.00%
Net Margin (TTM)41.17%-8.75%
Operating Margin (TTM)49.76%-7.27%
Gross Margin (TTM)67.66%71.90%

Growth

Revenue Growth

Cloudflare (NET) at 29.85% sits in the top revenue growth quartile, while Microsoft (MSFT) at 17.79% is closer to the peer norm — faster top-line expansion for NET.

Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Microsoft (MSFT) reports EPS growth of 31.60%, ranked against its industry; Cloudflare (NET) has no EPS growth figure this period.

Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and Cloudflare (NET)
MetricMSFTNET
Revenue Growth (YoY)17.79%29.85%
Revenue Growth (3Y CAGR)16.12%30.51%
EPS Growth (YoY)31.60%--
EPS Growth (3Y CAGR)22.86%--

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) at 1.23 keeps current ratio within its industry’s typical mid-range, while Cloudflare (NET) at 3.80 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

MSFT

Software & Services industry group

1.23

Max
5.11
Q3
2.77
Median
1.67
MSFT
1.23
Q1
1.01
Min
0.03

NET

Software & Services industry group

3.80

Max
5.11
NET
3.80
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Microsoft (MSFT) at 0.28 is near its industry mid-range for debt-to-equity ratio, while Cloudflare (NET) at 3.21 sits above its benchmark range, pointing to a heavier debt load relative to equity.

MSFT

Software & Services industry group

0.28

Max
2.52
Q3
1.13
Median
0.40
MSFT
0.28
Q1
0.07
Min
0.00

NET

Software & Services industry group

3.21

NET
3.21
Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and Cloudflare (NET)
MetricMSFTNET
Current Ratio (MRQ)1.233.80
Debt / Equity (MRQ)0.283.21
Net Debt / EBITDA0.34--

Dividends

Dividend Yield (TTM)

Cloudflare (NET) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a yield of 0.69%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.69%

MSFT
0.69%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NET

Software & Services industry group

0.00%

NET
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Cloudflare (NET) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a payout of 19.00%, ranking against industry peers normally.

MSFT

Software & Services industry group

19.00%

MSFT
19.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

NET

Software & Services industry group

0.00%

NET
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Cloudflare (NET)
MetricMSFTNET
Dividend Yield (TTM)0.69%0.00%
Dividend Payout Ratio (TTM)19.00%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Microsoft (MSFT) trades at 27.69 times trailing earnings, ranked against its peers, while Cloudflare (NET) has no P/E ratio this period.

MSFT

Software & Services industry group

27.69

Max
112.94
Q3
60.32
Median
32.91
MSFT
27.69
Q1
18.77
Min
6.69

NET

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
NET
--
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): NET does not report P/E ratio, so it has no value marker; MSFT is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

Both look expensive on sales: Microsoft (MSFT) at 11.37 sits in the upper P/S ratio quartile, and Cloudflare (NET) at 35.24 prices even higher, above its industry range.

MSFT

Software & Services industry group

11.37

Max
17.91
MSFT
11.37
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02

NET

Software & Services industry group

35.24

NET
35.24
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.38 sits near its industry’s typical P/B ratio, while Cloudflare (NET) at 65.73 prices above its benchmark range — NET looks rich relative to book.

MSFT

Software & Services industry group

8.38

Max
16.63
Q3
8.50
MSFT
8.38
Median
4.30
Q1
1.92
Min
-3.90

NET

Software & Services industry group

65.73

NET
65.73
Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
Loading chart…
Microsoft (MSFT) vs. Cloudflare (NET): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Cloudflare (NET)
MetricMSFTNET
P/E Ratio (TTM)27.69--
P/S Ratio (TTM)11.3735.24
P/B Ratio (MRQ)8.3865.73
Free Cash Flow Yield (TTM)0.08%0.83%