NET vs PANW Stock Comparison: AI Score, Valuation, Performance and Upside
Cloudflare and Palo Alto Networks both compete in network and cybersecurity, but Cloudflare is a smaller, faster-growing challenger built on a unique global edge network offering zero trust and CDN services, while Palo Alto Networks is a much larger, comprehensive cybersecurity platform pursuing a strategy of consolidating multiple security functions under unified customer contracts.
Cloudflare offers exposure to zero trust network security growth built on differentiated edge infrastructure at a premium valuation, while Palo Alto Networks offers a broader, more established security platform with a consolidation strategy and stronger free cash flow generation. Consider whether you prefer Cloudflare's focused edge network growth story or Palo Alto Networks' comprehensive platform scale.
PANW holds the edge across 3 of 5 key metrics in this comparison. PANW leads on both 1-year return (+71.38%) and forward P/E quality (90.43x vs 179.44x for NET), a relatively favorable combination of momentum and valuation. On fundamentals, NET is growing revenue faster (35.90%), while PANW maintains the higher operating margin (-2.46%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for NET (+11.24%) than for PANW (-2.04%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want exposure to zero trust network security growth built on Cloudflare's unique global edge network infrastructure
- Value Cloudflare's diversified product portfolio spanning CDN, security, and edge computing
- Believe continued large customer adoption will drive Cloudflare toward sustained profitability
- Are comfortable paying a premium valuation for a smaller, faster-growing challenger
- Want exposure to a broad, comprehensive cybersecurity platform spanning network, cloud, and security operations
- Value Palo Alto Networks' platform consolidation strategy and its ability to deepen customer account relationships
- Prefer strong, established free cash flow generation over a still-growth-focused, less profitable challenger
- Believe Palo Alto Networks' scale will help it continue defending against more focused point-solution competitors
| Metric | NET | PANW |
|---|---|---|
| AI scorei | 63.9 | 63.8 |
| AI ranki | #93 | #96 |
| Latest closei | $278.92 | $333.26 |
| 1M returni | -7.11% | -8.41% |
| 6M returni | +38.44% | +101.85% |
| 1Y returni | +30.08% | +71.38% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | NET | PANW |
|---|---|---|
| 1Y ago | $12.8K (+28.0%) started 2025-09-08 | $16.88K (+68.8%) started 2025-09-08 |
| 5Y ago | $21.76K (+117.6%) started 2021-09-08 | $42.86K (+328.6%) started 2021-09-09 |
| 10Y ago | $154.96K (+1449.6%) started 2019-09-13 | $138.46K (+1284.6%) started 2016-09-09 |
Hypothetical — past performance does not guarantee future results.
| Metric | NET | PANW |
|---|---|---|
| Market capi | $106.77B | $302.85B |
| Trailing P/Ei | N/A | 323.12 |
| Forward P/Ei | 179.44 | 90.43 |
| Price/Salesi | 42.56 | 15.00 |
| EV/Revenuei | 42.24 | 28.46 |
| Analyst targeti | $333.55 | $364.01 |
| Target upsidei | +11.24% | -2.04% |
| Metric | NET | PANW |
|---|---|---|
| Revenue growthi | 35.90% | 31.10% |
| Earnings growthi | N/A | 60.50% |
| EPS growthi | N/A | +60.50% |
| FCF margini | +27.54% | +33.75% |
| Operating margini | -7.60% | -2.46% |
| Profit margini | -8.21% | 7.95% |
| ROIC proxyi | -14.43% | 4.83% |
| Return on equityi | -14.43% | 4.83% |
| Dividend yieldi | N/A | N/A |
| Betai | 1.66 | 0.89 |
| Debt/equityi | 217.86 | 7.70 |
| Current ratioi | 1.82 | 0.86 |
| Quick ratioi | 1.75 | 0.73 |
Over the past year, NET and PANW have moved moderately in the same direction (correlation of 0.46), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | NET | PANW |
|---|---|---|---|
| 1Y | Growthi | +27.99% | +68.84% |
| CAGRi | +28.05% | +69.00% | |
| Volatilityi | 62.80% | 45.17% | |
| Sharpe ratioi | 0.64 | 1.29 | |
| Sortino ratioi | 0.91 | 2.00 | |
| Max drawdowni | 36.76% | 36.01% | |
| Current drawdowni | 15.69% | 15.84% | |
| Avg drawdowni | 14.68% | 11.96% | |
| Ulcer Indexi | 17.64% | 15.65% | |
| Max daily dropi | 23.62% | 9.28% | |
| Max wkly dropi | 23.58% | 13.66% | |
| 5Y | Growthi | +117.60% | +328.63% |
| CAGRi | +16.83% | +33.81% | |
| Volatilityi | 69.11% | 42.53% | |
| Sharpe ratioi | 0.51 | 0.80 | |
| Sortino ratioi | 0.74 | 1.15 | |
| Max drawdowni | 82.58% | 36.01% | |
| Current drawdowni | 15.69% | 15.84% | |
| Avg drawdowni | 47.26% | 11.30% | |
| Ulcer Indexi | 53.91% | 14.39% | |
| Max daily dropi | 23.62% | 28.44% | |
| Max wkly dropi | 39.37% | 28.86% | |
| 10Y | Growthi | +1449.56% | +1284.64% |
| CAGRi | +48.03% | +30.07% | |
| Volatilityi | 67.32% | 39.28% | |
| Sharpe ratioi | 0.85 | 0.76 | |
| Sortino ratioi | 1.28 | 1.08 | |
| Max drawdowni | 82.58% | 47.98% | |
| Current drawdowni | 15.69% | 15.84% | |
| Avg drawdowni | 36.52% | 11.35% | |
| Ulcer Indexi | 46.09% | 14.56% | |
| Max daily dropi | 23.62% | 28.44% | |
| Max wkly dropi | 39.37% | 28.86% |
| Category | NET | PANW |
|---|---|---|
| Company | Cloudflare, Inc. | Palo Alto Networks, Inc. |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | Software - Infrastructure |
| Core business | A cloud platform company providing content delivery network (CDN), zero trust network security, and edge computing services, running on a globally distributed network that sits between internet users and enterprise applications. | A comprehensive cybersecurity platform company providing network security, cloud security, and security operations products, pursuing a platform consolidation strategy that bundles multiple security functions under unified contracts. |
| Investor focus | Large customer growth (enterprises spending over a set annual threshold), zero trust and SASE product adoption, and path toward sustained profitability. | Platform consolidation momentum (customers bundling multiple security products), next-generation security annual recurring revenue (ARR) growth, and free cash flow generation. |
- Unique, globally distributed edge network infrastructure provides a differentiated foundation for security and performance products
- Strong momentum in zero trust network access, a fast-growing segment of the broader network security market
- Diversified product portfolio spanning CDN, security, and edge computing built on shared infrastructure
- Broad, comprehensive security platform spanning network, cloud, and security operations reduces customer need for multiple vendors
- Platform consolidation strategy encourages customers to bundle products under unified contracts, deepening account relationships
- Strong free cash flow generation supporting continued platform investment and strategic acquisitions
- Premium valuation reflects high growth expectations that require continued large customer and product adoption to justify
- Smaller scale and less enterprise security platform breadth than Palo Alto Networks' consolidated offering
- Path to sustained GAAP profitability remains a key area of investor focus given continued growth investment
- Platform consolidation strategy requires successful cross-selling execution across a growing, complex product portfolio
- Faces competition from more focused point-solution vendors, including Cloudflare in network security
- Transition of legacy hardware-based products to next-generation software and cloud offerings remains ongoing
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