NET vs. ZM: Cloudflare vs. Zoom Communications Stock Comparison
How do Cloudflare (NET) and Zoom Communications (ZM) 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 Zoom Communications (ZM) both fall under the Software & Services industry group, but NET is classified in IT Services while ZM is classified in Software.
| Profile Item | NET | ZM |
|---|---|---|
| Name | Cloudflare, Inc. Class A Common Stock | Zoom Communications, Inc. Class A Common Stock |
| 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 | Application Software |
| Market Capitalization | 96.32 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | September 13, 2019 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | NET | ZM |
|---|---|---|
| Total Return (1Y) | 27.13% | 12.58% |
| Total Return (3Y, Annualized) | 68.21% | 14.89% |
| Total Return (5Y, Annualized) | 7.66% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | NET | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 67.16% | 45.03% |
| Beta (5Y) | 1.34 | 0.99 |
| Max Drawdown (5Y) | -82.58% | -79.08% |
| Avg. Volume (3M) | 3.45M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | NET | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | 0.34 | 0.18 |
| Sortino Ratio (1Y) | 0.48 | 0.28 |
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 Zoom Communications (ZM) reports 32.14%, 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%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- 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 Zoom Communications (ZM) reports 65.19%, 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%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- 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 Zoom Communications (ZM) reports 24.61%, 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%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | NET | ZM |
|---|---|---|
| ROE (TTM) | -17.00% | 32.14% |
| ROA (TTM) | -2.00% | 6.11% |
| Net Margin (TTM) | -8.75% | 65.19% |
| Operating Margin (TTM) | -7.27% | 24.61% |
| Gross Margin (TTM) | 71.90% | 77.66% |
Growth
Revenue Growth
Cloudflare (NET) at 29.85% sits in the top revenue growth quartile, while Zoom Communications (ZM) at 4.36% is in the bottom quartile, showing a clear gap in revenue momentum.
EPS Growth
Only one side can be read here: Zoom Communications (ZM) reports EPS growth of 92.52%, ranked against its industry; Cloudflare (NET) has no EPS growth figure this period.
Growth Metrics
| Metric | NET | ZM |
|---|---|---|
| Revenue Growth (YoY) | 29.85% | 4.36% |
| Revenue Growth (3Y CAGR) | 30.51% | 3.49% |
| EPS Growth (YoY) | -- | 92.52% |
| EPS Growth (3Y CAGR) | -- | 162.93% |
Financial Strength
Current Ratio (MRQ)
Both Cloudflare (NET) at 3.80 and Zoom Communications (ZM) at 3.83 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
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Zoom Communications (ZM) 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
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | NET | ZM |
|---|---|---|
| Current Ratio (MRQ) | 3.80 | 3.83 |
| Debt / Equity (MRQ) | 3.21 | 0.01 |
| Net Debt / EBITDA | -- | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Cloudflare (NET) nor Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 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 Zoom Communications (ZM) 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%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | NET | ZM |
|---|---|---|
| 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: Zoom Communications (ZM) trades at 8.34 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
- --
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
Zoom Communications (ZM) at 5.25 prices around its industry’s typical P/S ratio, while Cloudflare (NET) at 35.24 clears its benchmark range — NET looks notably rich on sales.
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
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Zoom Communications (ZM) at 2.32 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.
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
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | NET | ZM |
|---|---|---|
| P/E Ratio (TTM) | -- | 8.34 |
| P/S Ratio (TTM) | 35.24 | 5.25 |
| P/B Ratio (MRQ) | 65.73 | 2.32 |
| Free Cash Flow Yield (TTM) | 0.83% | 7.53% |