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NET vs. PSTG: A Head-to-Head Stock Comparison

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Here’s a clear look at NET and PSTG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolNETPSTG
Company NameCloudflare, Inc.Pure Storage, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesTechnology Hardware, Storage & Peripherals
Market Capitalization71.52 billion USD19.89 billion USD
ExchangeNYSENYSE
Listing DateSeptember 13, 2019October 6, 2015
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of NET and PSTG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

NET vs. PSTG: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolNETPSTG
5-Day Price Return6.47%9.21%
13-Week Price Return26.88%9.48%
26-Week Price Return35.06%-6.47%
52-Week Price Return151.40%0.53%
Month-to-Date Return-1.17%2.25%
Year-to-Date Return90.60%-0.93%
10-Day Avg. Volume2.18M2.58M
3-Month Avg. Volume3.19M2.50M
3-Month Volatility35.70%37.33%
Beta2.031.18

Profitability

Return on Equity (TTM)

NET

-10.00%

IT Services Industry

Max
29.51%
Q3
16.98%
Median
13.47%
Q1
7.93%
Min
-3.97%

NET has a negative Return on Equity of -10.00%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

PSTG

9.44%

Technology Hardware, Storage & Peripherals Industry

Max
47.24%
Q3
29.40%
Median
9.11%
Q1
6.06%
Min
-0.79%

PSTG’s Return on Equity of 9.44% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

NET vs. PSTG: A comparison of their Return on Equity (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Net Profit Margin (TTM)

NET

-6.22%

IT Services Industry

Max
19.82%
Q3
11.49%
Median
6.67%
Q1
3.61%
Min
-4.62%

NET has a negative Net Profit Margin of -6.22%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

PSTG

3.93%

Technology Hardware, Storage & Peripherals Industry

Max
13.86%
Q3
8.17%
Median
4.62%
Q1
3.65%
Min
-0.21%

PSTG’s Net Profit Margin of 3.93% is aligned with the median group of its peers in the Technology Hardware, Storage & Peripherals industry. This indicates its ability to convert revenue into profit is typical for the sector.

NET vs. PSTG: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Operating Profit Margin (TTM)

NET

-9.89%

IT Services Industry

Max
21.69%
Q3
14.50%
Median
10.06%
Q1
6.98%
Min
0.06%

NET has a negative Operating Profit Margin of -9.89%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

PSTG

2.95%

Technology Hardware, Storage & Peripherals Industry

Max
17.80%
Q3
10.33%
Median
6.31%
Q1
4.86%
Min
2.53%

PSTG’s Operating Profit Margin of 2.95% is in the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

NET vs. PSTG: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Profitability at a Glance

SymbolNETPSTG
Return on Equity (TTM)-10.00%9.44%
Return on Assets (TTM)-2.99%3.32%
Net Profit Margin (TTM)-6.22%3.93%
Operating Profit Margin (TTM)-9.89%2.95%
Gross Profit Margin (TTM)76.14%69.26%

Financial Strength

Current Ratio (MRQ)

NET

5.14

IT Services Industry

Max
2.42
Q3
1.81
Median
1.47
Q1
1.09
Min
0.44

NET’s Current Ratio of 5.14 is exceptionally high, placing it well outside the typical range for the IT Services industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

PSTG

1.61

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

PSTG’s Current Ratio of 1.61 aligns with the median group of the Technology Hardware, Storage & Peripherals industry, indicating that its short-term liquidity is in line with its sector peers.

NET vs. PSTG: A comparison of their Current Ratio (MRQ) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Debt-to-Equity Ratio (MRQ)

NET

2.63

IT Services Industry

Max
2.33
Q3
1.17
Median
0.54
Q1
0.15
Min
0.00

With a Debt-to-Equity Ratio of 2.63, NET operates with exceptionally high leverage compared to the IT Services industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

PSTG

0.08

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

Falling into the lower quartile for the Technology Hardware, Storage & Peripherals industry, PSTG’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

NET vs. PSTG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Interest Coverage Ratio (TTM)

NET

-4.24

IT Services Industry

Max
144.50
Q3
84.49
Median
13.76
Q1
2.59
Min
-28.13

NET has a negative Interest Coverage Ratio of -4.24. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

PSTG

-2.95

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

PSTG has a negative Interest Coverage Ratio of -2.95. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

NET vs. PSTG: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Financial Strength at a Glance

SymbolNETPSTG
Current Ratio (MRQ)5.141.61
Quick Ratio (MRQ)5.011.40
Debt-to-Equity Ratio (MRQ)2.630.08
Interest Coverage Ratio (TTM)-4.24-2.95

Growth

Revenue Growth

NET vs. PSTG: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

NET vs. PSTG: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

NET

0.00%

IT Services Industry

Max
2.80%
Q3
1.74%
Median
0.62%
Q1
0.00%
Min
0.00%

NET currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

PSTG

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
4.50%
Q3
3.66%
Median
1.90%
Q1
0.00%
Min
0.00%

PSTG currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

NET vs. PSTG: A comparison of their Dividend Yield (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend Payout Ratio (TTM)

NET

0.00%

IT Services Industry

Max
147.75%
Q3
63.58%
Median
24.63%
Q1
0.00%
Min
0.00%

NET has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

PSTG

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
66.07%
Median
42.79%
Q1
0.00%
Min
0.00%

PSTG has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

NET vs. PSTG: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Dividend at a Glance

SymbolNETPSTG
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

NET

--

IT Services Industry

Max
41.55
Q3
31.54
Median
23.25
Q1
18.12
Min
6.57

P/E Ratio data for NET is currently unavailable.

PSTG

142.37

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

At 142.37, PSTG’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Technology Hardware, Storage & Peripherals industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

NET vs. PSTG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Sales Ratio (TTM)

NET

35.68

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

With a P/S Ratio of 35.68, NET trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

PSTG

5.59

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

With a P/S Ratio of 5.59, PSTG trades at a valuation that eclipses even the highest in the Technology Hardware, Storage & Peripherals industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

NET vs. PSTG: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Price-to-Book Ratio (MRQ)

NET

54.75

IT Services Industry

Max
11.19
Q3
6.38
Median
3.47
Q1
2.31
Min
0.96

At 54.75, NET’s P/B Ratio is at an extreme premium to the IT Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

PSTG

12.51

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

PSTG’s P/B Ratio of 12.51 is in the upper tier for the Technology Hardware, Storage & Peripherals industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

NET vs. PSTG: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Technology Hardware, Storage & Peripherals industry benchmarks.

Valuation at a Glance

SymbolNETPSTG
Price-to-Earnings Ratio (TTM)--142.37
Price-to-Sales Ratio (TTM)35.685.59
Price-to-Book Ratio (MRQ)54.7512.51
Price-to-Free Cash Flow Ratio (TTM)374.6832.15