NET vs. SHOP: Cloudflare vs. Shopify Stock Comparison
How do Cloudflare (NET) and Shopify (SHOP) 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 Shopify (SHOP) are both classified in the Internet Services & Infrastructure sub-industry within the broader IT Services industry, placing them in the closest GICS peer bucket.
| Profile Item | NET | SHOP |
|---|---|---|
| Name | Cloudflare, Inc. Class A Common Stock | Shopify Inc. |
| Country/Region | United States | Canada |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | IT Services |
| GICS Sub-Industry | Internet Services & Infrastructure | Internet Services & Infrastructure |
| Market Capitalization | 96.32 billion USD | 191.58 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | September 13, 2019 | May 20, 2015 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NET | SHOP |
|---|---|---|
| Total Return (1Y) | 27.13% | -0.87% |
| Total Return (3Y, Annualized) | 68.21% | 35.77% |
| Total Return (5Y, Annualized) | 7.66% | -0.57% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | NET | SHOP |
|---|---|---|
| Volatility (1Y, Annualized) | 67.16% | 59.71% |
| Beta (5Y) | 1.34 | 2.65 |
| Max Drawdown (5Y) | -82.58% | -84.82% |
| Avg. Volume (3M) | 3.45M | 8.79M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NET | SHOP |
|---|---|---|
| Sharpe Ratio (1Y) | 0.34 | -0.09 |
| Sortino Ratio (1Y) | 0.48 | -0.12 |
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 Shopify (SHOP) reports 16.83%, 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%
SHOP
Software & Services industry group
16.83%
- Max
- 53.85%
- Q3
- 17.90%
- SHOP
- 16.83%
- Median
- 6.59%
- 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 Shopify (SHOP) reports 15.01%, 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%
SHOP
Software & Services industry group
15.01%
- Max
- 41.17%
- Q3
- 15.28%
- SHOP
- 15.01%
- Median
- 4.63%
- 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 Shopify (SHOP) reports 18.39%, 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%
SHOP
Software & Services industry group
18.39%
- Max
- 46.89%
- SHOP
- 18.39%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | NET | SHOP |
|---|---|---|
| ROE (TTM) | -17.00% | 16.83% |
| ROA (TTM) | -2.00% | 10.77% |
| Net Margin (TTM) | -8.75% | 15.01% |
| Operating Margin (TTM) | -7.27% | 18.39% |
| Gross Margin (TTM) | 71.90% | 47.49% |
Growth
Revenue Growth
Both Cloudflare (NET) at 29.85% and Shopify (SHOP) at 30.14% sit in the top peer quartile for revenue growth, so each is growing its top line faster than typical industry peers.
EPS Growth
Only one side can be read here: Shopify (SHOP) reports EPS growth of -39.47%, ranked against its industry; Cloudflare (NET) has no EPS growth figure this period.
Growth Metrics
| Metric | NET | SHOP |
|---|---|---|
| Revenue Growth (YoY) | 29.85% | 30.14% |
| Revenue Growth (3Y CAGR) | 30.51% | 27.31% |
| EPS Growth (YoY) | -- | -39.47% |
| EPS Growth (3Y CAGR) | -- | -- |
Financial Strength
Current Ratio (MRQ)
Both Cloudflare (NET) at 3.80 and Shopify (SHOP) at 4.86 post current ratio above their industries’ typical mid-ranges — short-term liquidity appears comfortable, though unusually high readings can point to idle current assets.
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
SHOP
Software & Services industry group
4.86
- Max
- 5.11
- SHOP
- 4.86
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Shopify (SHOP) at 0.01 keeps leverage in the lower quartile, while Cloudflare (NET) at 3.21 is above its industry debt-to-equity ratio range.
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
SHOP
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- SHOP
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | NET | SHOP |
|---|---|---|
| Current Ratio (MRQ) | 3.80 | 4.86 |
| Debt / Equity (MRQ) | 3.21 | 0.01 |
| Net Debt / EBITDA | -- | -1.75 |
Dividends
Dividend Yield (TTM)
Neither Cloudflare (NET) nor Shopify (SHOP) 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%
SHOP
Software & Services industry group
0.00%
- SHOP
- 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 Shopify (SHOP) 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%
SHOP
Software & Services industry group
0.00%
- SHOP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NET | SHOP |
|---|---|---|
| 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: Shopify (SHOP) trades at 91.36 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
- --
SHOP
Software & Services industry group
91.36
- Max
- 112.94
- SHOP
- 91.36
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
P/S Ratio (TTM)
Both look expensive on sales: Shopify (SHOP) at 13.52 sits in the upper P/S ratio quartile, and Cloudflare (NET) at 35.24 prices even higher, above its industry 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
SHOP
Software & Services industry group
13.52
- Max
- 17.91
- SHOP
- 13.52
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Both look rich against book: Shopify (SHOP) at 15.02 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
SHOP
Software & Services industry group
15.02
- Max
- 16.63
- SHOP
- 15.02
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | NET | SHOP |
|---|---|---|
| P/E Ratio (TTM) | -- | 91.36 |
| P/S Ratio (TTM) | 35.24 | 13.52 |
| P/B Ratio (MRQ) | 65.73 | 15.02 |
| Free Cash Flow Yield (TTM) | 0.83% | 0.86% |