NET vs. PANW: Cloudflare vs. Palo Alto Networks Stock Comparison
How do Cloudflare (NET) and Palo Alto Networks (PANW) 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
Cloudflare (NET) and Palo Alto Networks (PANW) both fall under the Software & Services industry group, but NET is classified in IT Services while PANW is classified in Software.
| Profile Item | NET | PANW |
|---|---|---|
| Name | Cloudflare, Inc. Class A Common Stock | Palo Alto Networks, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | Software |
| GICS Sub-Industry | Internet Services & Infrastructure | Systems Software |
| Market Capitalization | 96.32 billion USD | 256.86 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | September 13, 2019 | July 20, 2012 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NET | PANW |
|---|---|---|
| Total Return (1Y) | 27.13% | 53.99% |
| Total Return (3Y, Annualized) | 68.21% | 39.16% |
| Total Return (5Y, Annualized) | 7.66% | 30.80% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | NET | PANW |
|---|---|---|
| Volatility (1Y, Annualized) | 67.16% | 51.34% |
| Beta (5Y) | 1.34 | 1.00 |
| Max Drawdown (5Y) | -82.58% | -36.01% |
| Avg. Volume (3M) | 3.45M | 6.03M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NET | PANW |
|---|---|---|
| Sharpe Ratio (1Y) | 0.34 | 0.97 |
| Sortino Ratio (1Y) | 0.48 | 1.49 |
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 Palo Alto Networks (PANW) reports 1.74%, ranking against industry peers normally.
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%
PANW
Software & Services industry group
1.74%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- PANW
- 1.74%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Cloudflare (NET) reports a negative net margin of -8.75%, usually indicating a net loss over the period. Meanwhile Palo Alto Networks (PANW) reports 2.67%, ranking against industry peers normally.
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%
PANW
Software & Services industry group
2.67%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- PANW
- 2.67%
- Q1
- -5.42%
- Min
- -33.17%
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 Palo Alto Networks (PANW) reports 5.40%, ranking against industry peers normally.
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%
PANW
Software & Services industry group
5.40%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- PANW
- 5.40%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | NET | PANW |
|---|---|---|
| ROE (TTM) | -17.00% | 1.74% |
| ROA (TTM) | -2.00% | 1.40% |
| Net Margin (TTM) | -8.75% | 2.67% |
| Operating Margin (TTM) | -7.27% | 5.40% |
| Gross Margin (TTM) | 71.90% | 70.38% |
Growth
Revenue Growth
Cloudflare (NET) at 29.85% sits in the top revenue growth quartile, while Palo Alto Networks (PANW) at 24.50% is closer to the peer norm — faster top-line expansion for NET.
EPS Growth
Only one side can be read here: Palo Alto Networks (PANW) reports EPS growth of -75.00%, ranked against its industry; Cloudflare (NET) has no EPS growth figure this period.
Growth Metrics
| Metric | NET | PANW |
|---|---|---|
| Revenue Growth (YoY) | 29.85% | 24.50% |
| Revenue Growth (3Y CAGR) | 30.51% | 18.54% |
| EPS Growth (YoY) | -- | -75.00% |
| EPS Growth (3Y CAGR) | -- | -14.50% |
Financial Strength
Current Ratio (MRQ)
Cloudflare (NET) at 3.80 carries current ratio above its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.87 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
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
PANW
Software & Services industry group
0.87
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- PANW
- 0.87
- Min
- 0.03
Debt / Equity (MRQ)
Palo Alto Networks (PANW) at 0.09 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.
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
PANW
Software & Services industry group
0.09
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- PANW
- 0.09
- Q1
- 0.07
- Min
- 0.00
Financial Strength Metrics
| Metric | NET | PANW |
|---|---|---|
| Current Ratio (MRQ) | 3.80 | 0.87 |
| Debt / Equity (MRQ) | 3.21 | 0.09 |
| Net Debt / EBITDA | -- | -0.32 |
Dividends
Dividend Yield (TTM)
Neither Cloudflare (NET) nor Palo Alto Networks (PANW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither Cloudflare (NET) nor Palo Alto Networks (PANW) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
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%
PANW
Software & Services industry group
0.00%
- PANW
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NET | PANW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
An earnings multiple is available for just one side: Palo Alto Networks (PANW) trades at 784.60 times trailing earnings, ranked against its peers, while Cloudflare (NET) has no P/E ratio this period.
NET
Software & Services industry group
--
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
- NET
- --
PANW
Software & Services industry group
784.60
- PANW
- 784.60
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Investors are paying well above the peer range per dollar of sales for both Cloudflare (NET) at 35.24 and Palo Alto Networks (PANW) at 22.37 — each P/S ratio clears its industry’s benchmark range.
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
PANW
Software & Services industry group
22.37
- PANW
- 22.37
- Max
- 17.91
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Both look rich against book: Palo Alto Networks (PANW) at 9.30 sits in the upper P/B ratio quartile, and Cloudflare (NET) at 65.73 prices even higher, above its industry range.
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
PANW
Software & Services industry group
9.30
- Max
- 16.63
- PANW
- 9.30
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | NET | PANW |
|---|---|---|
| P/E Ratio (TTM) | -- | 784.60 |
| P/S Ratio (TTM) | 35.24 | 22.37 |
| P/B Ratio (MRQ) | 65.73 | 9.30 |
| Free Cash Flow Yield (TTM) | 0.83% | 1.65% |