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NET vs. ZS: Cloudflare vs. Zscaler Stock Comparison

How do Cloudflare (NET) and Zscaler (ZS) 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 Zscaler (ZS) both fall under the Software & Services industry group, but NET is classified in IT Services while ZS is classified in Software.

Company profile comparison for Cloudflare (NET) and Zscaler (ZS)
Profile ItemNETZS
NameCloudflare, Inc. Class A Common StockZscaler Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryInternet Services & InfrastructureSystems Software
Market Capitalization96.32 billion USD32.23 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateSeptember 13, 2019March 16, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

NET
ZS
GSPC
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Cloudflare (NET) vs. Zscaler (ZS), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Cloudflare (NET) and Zscaler (ZS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cloudflare (NET) and Zscaler (ZS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cloudflare (NET) and Zscaler (ZS)
MetricNETZS
Total Return (1Y)27.13%-37.61%
Total Return (3Y, Annualized)68.21%5.36%
Total Return (5Y, Annualized)7.66%-10.75%

Risk Profile

Drawdown History

NET
ZS
GSPC
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Cloudflare (NET) vs. Zscaler (ZS), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Cloudflare (NET) and Zscaler (ZS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cloudflare (NET) and Zscaler (ZS)
MetricNETZS
Volatility (1Y, Annualized)67.16%68.66%
Beta (5Y)1.340.88
Max Drawdown (5Y)-82.58%-76.41%
Avg. Volume (3M)3.45M2.92M

Risk-Adjusted Performance

Risk-Return Positioning

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NET and ZS are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Cloudflare (NET) and Zscaler (ZS)
MetricNETZS
Sharpe Ratio (1Y)0.34-0.61
Sortino Ratio (1Y)0.48-0.79

Profitability

ROE (TTM)

Both Cloudflare (NET) at -17.00% and Zscaler (ZS) at -2.87% report negative ROE values. Negative ROE can reflect losses or negative shareholders’ equity, so both readings need extra context.

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%

ZS

Software & Services industry group

-2.87%

Max
53.85%
Q3
17.90%
Median
6.59%
ZS
-2.87%
Q1
-9.59%
Min
-50.52%
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Both Cloudflare (NET) at -8.75% and Zscaler (ZS) at -1.89% report negative net margin values, usually indicating net losses over the period.

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%

ZS

Software & Services industry group

-1.89%

Max
41.17%
Q3
15.28%
Median
4.63%
ZS
-1.89%
Q1
-5.42%
Min
-33.17%
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Cloudflare (NET) at -7.27% and Zscaler (ZS) at -1.01% report negative operating margin values, usually indicating operating losses over the period.

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%

ZS

Software & Services industry group

-1.01%

Max
46.89%
Q3
17.64%
Median
8.73%
ZS
-1.01%
Q1
-2.13%
Min
-30.45%
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cloudflare (NET) and Zscaler (ZS)
MetricNETZS
ROE (TTM)-17.00%-2.87%
ROA (TTM)-2.00%-1.03%
Net Margin (TTM)-8.75%-1.89%
Operating Margin (TTM)-7.27%-1.01%
Gross Margin (TTM)71.90%76.87%

Growth

Revenue Growth

Cloudflare (NET) at 29.85% sits in the top revenue growth quartile, while Zscaler (ZS) at 25.42% is closer to the peer norm — faster top-line expansion for NET.

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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Neither Cloudflare (NET) nor Zscaler (ZS) reports a EPS growth value for this period, so a direct comparison isn't possible.

Growth Metrics

Growth metrics for Cloudflare (NET) and Zscaler (ZS)
MetricNETZS
Revenue Growth (YoY)29.85%25.42%
Revenue Growth (3Y CAGR)30.51%27.51%
EPS Growth (YoY)----
EPS Growth (3Y CAGR)----

Financial Strength

Current Ratio (MRQ)

Zscaler (ZS) at 1.70 keeps current ratio within its industry’s typical mid-range, while Cloudflare (NET) at 3.80 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

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

ZS

Software & Services industry group

1.70

Max
5.11
Q3
2.77
ZS
1.70
Median
1.67
Q1
1.01
Min
0.03
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Zscaler (ZS) at 0.72 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

ZS

Software & Services industry group

0.72

Max
2.52
Q3
1.13
ZS
0.72
Median
0.40
Q1
0.07
Min
0.00
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Cloudflare (NET) and Zscaler (ZS)
MetricNETZS
Current Ratio (MRQ)3.801.70
Debt / Equity (MRQ)3.210.72
Net Debt / EBITDA---36.63

Dividends

Dividend Yield (TTM)

Neither Cloudflare (NET) nor Zscaler (ZS) 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%

ZS

Software & Services industry group

0.00%

ZS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Cloudflare (NET) nor Zscaler (ZS) 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%

ZS

Software & Services industry group

0.00%

ZS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cloudflare (NET) and Zscaler (ZS)
MetricNETZS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Neither Cloudflare (NET) nor Zscaler (ZS) reports a P/E ratio value for this period, so a direct comparison isn’t possible.

NET

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
NET
--

ZS

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
ZS
--
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Cloudflare (NET) vs. Zscaler (ZS): Neither stock reports P/E ratio, so the chart shows available benchmark boxes without value markers.

P/S Ratio (TTM)

Both look expensive on sales: Zscaler (ZS) at 9.61 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

ZS

Software & Services industry group

9.61

Max
17.91
ZS
9.61
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Zscaler (ZS) at 12.40 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

ZS

Software & Services industry group

12.40

Max
16.63
ZS
12.40
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
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Cloudflare (NET) vs. Zscaler (ZS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cloudflare (NET) and Zscaler (ZS)
MetricNETZS
P/E Ratio (TTM)----
P/S Ratio (TTM)35.249.61
P/B Ratio (MRQ)65.7312.40
Free Cash Flow Yield (TTM)0.83%3.34%