Pricing Log in Create free account

Cloudflare, Inc. (NET) vs Palo Alto Networks, Inc. (PANW)

Cloudflare, Inc. and Palo Alto Networks, Inc. are both Software Infrastructure companies. Palo Alto Networks, Inc. is the larger, with a market value of $257.6B against $87.1B — 3.0× the size. Cloudflare, Inc. has negative trailing earnings, so its P/E is not meaningful; Palo Alto Networks, Inc. trades at 597×. Cloudflare, Inc. grew revenue faster over the last twelve months: 35.7% against 24.5%. Palo Alto Networks, Inc. has the higher net margin (2.67% vs −8.75%) and the higher return on invested capital (1.66% vs −4.07%). Across the 19 metrics below, Palo Alto Networks, Inc. leads on 13 and Cloudflare, Inc. on 6.

Valuation

Metric NET PANW Software Infrastructure median
P/E n/m 596.98 24.43
P/S 31.97 20.64 2.81
P/B 59.64 8.62 2.88
Price to free cash flow 271.33 57.62 17.94
EV/EBITDA n/m 109.14 14.51
EV/Sales 32.07 20.54 2.91
Earnings yield (0.28%) 0.17% 0.00%
Free cash flow yield 0.37% 1.74% 0.49%

Profitability

Metric NET PANW Software Infrastructure median
Gross margin 71.90% 70.36% 57.45%
Operating margin (14.08%) 6.05% 0.00%
Net margin (8.75%) 2.67% 0.00%
Free cash flow margin 11.78% 35.83% 0.00%
Return on equity (17.00%) 1.74% 0.00%
Return on assets (3.55%) 0.85% 0.00%
Return on invested capital (4.07%) 1.66% 0.00%

Growth

Metric NET PANW Software Infrastructure median
Revenue growth (TTM) 35.73% 24.50% 14.28%
EPS growth (last fiscal year) (26.09%) (75.00%) 18.26%
Revenue growth, 5-year CAGR 38.13% 21.95% 16.15%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric NET PANW Software Infrastructure median
Debt to equity 3.03 0.06 0.02
Current ratio 3.80 0.87 1.53
Net debt to EBITDA (23.42) (0.60) 0.05

Dividend

Metric NET PANW Software Infrastructure median
Dividend yield — — 1.06%
Payout ratio — — 0.29

Size

Metric NET PANW Software Infrastructure median
Market cap 87.07b 257.64b 661.51m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack