NET vs. STM: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at NET and STM, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
NET is a standard domestic stock, while STM trades as New York Registered Shares, providing U.S. investors with a way to invest in the foreign-based company.
| Symbol | NET | STM |
|---|---|---|
| Company Name | Cloudflare, Inc. | STMicroelectronics N.V. |
| Country | United States | Netherlands |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 68.26 billion USD | 24.39 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | September 13, 2019 | December 8, 1994 |
| Security Type | Common Stock | NY Reg Shrs |
Historical Performance
This chart compares the performance of NET and STM 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.
Historical Performance at a Glance
| Symbol | NET | STM |
|---|---|---|
| 5-Day Price Return | -0.32% | 5.40% |
| 13-Week Price Return | 23.81% | 4.81% |
| 26-Week Price Return | 21.98% | -10.79% |
| 52-Week Price Return | 142.94% | -17.66% |
| Month-to-Date Return | -5.68% | 4.79% |
| Year-to-Date Return | 81.91% | -3.07% |
| 10-Day Avg. Volume | 2.16M | 1.96M |
| 3-Month Avg. Volume | 3.20M | 2.56M |
| 3-Month Volatility | 35.20% | 50.46% |
| Beta | 2.03 | 1.38 |
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.
STM
10.96%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.74%
- Q3
- 23.49%
- Median
- 11.60%
- Q1
- 3.23%
- Min
- -20.69%
STM’s Return on Equity of 10.96% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
STM
6.92%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.17%
- Q3
- 22.38%
- Median
- 11.95%
- Q1
- 3.21%
- Min
- -25.16%
STM’s Net Profit Margin of 6.92% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
STM
5.20%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.03%
- Q3
- 27.84%
- Median
- 12.45%
- Q1
- 5.15%
- Min
- -28.61%
STM’s Operating Profit Margin of 5.20% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | NET | STM |
|---|---|---|
| Return on Equity (TTM) | -10.00% | 10.96% |
| Return on Assets (TTM) | -2.99% | 7.69% |
| Net Profit Margin (TTM) | -6.22% | 6.92% |
| Operating Profit Margin (TTM) | -9.89% | 5.20% |
| Gross Profit Margin (TTM) | 76.14% | 34.89% |
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.
STM
2.60
Semiconductors & Semiconductor Equipment Industry
- Max
- 8.42
- Q3
- 4.70
- Median
- 2.75
- Q1
- 2.07
- Min
- 1.04
STM’s Current Ratio of 2.60 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
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.
STM
0.17
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.45
- Median
- 0.22
- Q1
- 0.01
- Min
- 0.00
STM’s Debt-to-Equity Ratio of 0.17 is typical for the Semiconductors & Semiconductor Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
STM
5.37
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.10
- Median
- 27.22
- Q1
- 7.28
- Min
- -4.26
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s Interest Coverage Ratio of 5.37 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | NET | STM |
|---|---|---|
| Current Ratio (MRQ) | 5.14 | 2.60 |
| Quick Ratio (MRQ) | 5.01 | 1.93 |
| Debt-to-Equity Ratio (MRQ) | 2.63 | 0.17 |
| Interest Coverage Ratio (TTM) | -4.24 | 5.37 |
Growth
Revenue Growth
EPS Growth
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.
STM
1.23%
Semiconductors & Semiconductor Equipment Industry
- Max
- 4.16%
- Q3
- 1.78%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
STM’s Dividend Yield of 1.23% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.
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.
STM
14.49%
Semiconductors & Semiconductor Equipment Industry
- Max
- 196.12%
- Q3
- 87.72%
- Median
- 26.57%
- Q1
- 0.00%
- Min
- 0.00%
STM’s Dividend Payout Ratio of 14.49% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | NET | STM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.23% |
| Dividend Payout Ratio (TTM) | 0.00% | 14.49% |
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.
STM
28.46
Semiconductors & Semiconductor Equipment Industry
- Max
- 109.37
- Q3
- 57.11
- Median
- 28.95
- Q1
- 22.13
- Min
- 11.14
STM’s P/E Ratio of 28.46 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
STM
1.97
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.09
- Q3
- 10.10
- Median
- 4.82
- Q1
- 2.60
- Min
- 0.93
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, STM’s P/S Ratio of 1.97 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
STM
1.40
Semiconductors & Semiconductor Equipment Industry
- Max
- 13.56
- Q3
- 6.75
- Median
- 3.68
- Q1
- 1.89
- Min
- 0.60
STM’s P/B Ratio of 1.40 is in the lower quartile for the Semiconductors & Semiconductor Equipment industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | NET | STM |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | -- | 28.46 |
| Price-to-Sales Ratio (TTM) | 35.68 | 1.97 |
| Price-to-Book Ratio (MRQ) | 54.75 | 1.40 |
| Price-to-Free Cash Flow Ratio (TTM) | 374.68 | 259.32 |