TWLO vs NET Stock Comparison: AI Score, Valuation, Performance and Upside
Twilio is generally evaluated as a communications API platform focused on improving profitability while sustaining usage-based growth, while Cloudflare is assessed as a broader internet infrastructure and security platform still prioritizing growth alongside margin progress. The comparison contrasts a more mature, cash-flow-focused software business against a faster-growing but higher-multiple infrastructure platform.
Use this comparison to weigh Twilio's improving profitability and communications API moat against Cloudflare's broader infrastructure growth and premium valuation.
TWLO holds the edge across 3 of 5 key metrics in this comparison. TWLO leads on both 1-year return (+123.11%) and forward P/E quality (34.79x vs 179.44x for NET), a relatively favorable combination of momentum and valuation. On fundamentals, NET is growing revenue faster (35.90%), while TWLO maintains the higher operating margin (7.83%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for NET (+11.24%) than for TWLO (+6.98%).
- Want exposure to a communications platform prioritizing profitability
- Believe usage-based revenue will stabilize alongside customer expansion
- Prefer a somewhat more reasonable valuation relative to growth
- Value improving free cash flow generation
- Want exposure to a broad, expanding internet infrastructure and security platform
- Believe large customer and enterprise adoption will keep accelerating
- Are comfortable paying a premium multiple for sustained growth
- Value a durable network-effect moat across security and performance products
| Metric | TWLO | NET |
|---|---|---|
| AI score | 58.1 | 64.8 |
| AI rank | #177 | #77 |
| Latest close | $235.63 | $305.11 |
| 1M return | +19.40% | +9.37% |
| 6M return | +94.80% | +68.55% |
| 1Y return | +123.11% | +46.19% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | TWLO | NET |
|---|---|---|
| 1Y ago | $22.62K (+126.2%) started 2025-09-02 | $14.67K (+46.7%) started 2025-09-02 |
| 5Y ago | $6.6K (-34.0%) started 2021-08-31 | $24.05K (+140.5%) started 2021-09-01 |
| 10Y ago | $43.94K (+339.4%) started 2016-08-31 | $169.51K (+1595.1%) started 2019-09-13 |
Hypothetical — past performance does not guarantee future results.
| Metric | TWLO | NET |
|---|---|---|
| Market cap | $36.19B | $106.77B |
| Trailing P/E | 32.59 | N/A |
| Forward P/E | 34.79 | 179.44 |
| Price/Sales | 6.49 | 42.56 |
| EV/Revenue | 6.27 | 42.24 |
| Analyst target | $252.08 | $333.55 |
| Target upside | +6.98% | +11.24% |
| Metric | TWLO | NET |
|---|---|---|
| Revenue growth | 22.00% | 35.90% |
| Earnings growth | 4671.50% | N/A |
| EPS growth | +4671.50% | N/A |
| FCF margin | +17.13% | +27.54% |
| Operating margin | 7.83% | -7.60% |
| Profit margin | 20.61% | -8.21% |
| ROIC proxy | 13.50% | -14.43% |
| Return on equity | 13.50% | -14.43% |
| Dividend yield | 0.00% | N/A |
| Beta | 1.38 | 1.66 |
| Debt/equity | 11.87 | 217.86 |
| Current ratio | 4.62 | 1.82 |
| Quick ratio | 4.21 | 1.75 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | TWLO | NET |
|---|---|---|---|
| 1Y | Growth | +126.15% | +46.65% |
| CAGR | +127.30% | +46.98% | |
| Sharpe ratio | 1.56 | 0.87 | |
| Max drawdown | 24.73% | 36.76% | |
| Max daily drop | 8.94% | 23.62% | |
| Max wkly drop | 18.19% | 23.58% | |
| 5Y | Growth | -33.99% | +140.51% |
| CAGR | -7.97% | +19.20% | |
| Sharpe ratio | 0.09 | 0.54 | |
| Max drawdown | 88.42% | 82.58% | |
| Max daily drop | 34.61% | 23.62% | |
| Max wkly drop | 43.47% | 39.37% | |
| 10Y | Growth | +339.44% | +1595.06% |
| CAGR | +15.96% | +50.12% | |
| Sharpe ratio | 0.47 | 0.87 | |
| Max drawdown | 90.36% | 82.58% | |
| Max daily drop | 34.61% | 23.62% | |
| Max wkly drop | 43.47% | 39.37% |
| Category | TWLO | NET |
|---|---|---|
| Company | Twilio Inc. | Cloudflare, Inc. |
| Sector | Cloud Communications Software | Technology |
| Industry | N/A | Software - Infrastructure |
| Core business | Twilio provides cloud-based communications APIs that let developers embed messaging, voice, and email capabilities into applications, alongside customer engagement products. | Cloudflare operates a global edge network providing content delivery, security, and serverless computing services to businesses and developers. |
| Investor focus | Investors watch dollar-based net expansion rate, progress on profitability after years of prioritizing growth, and adoption of AI-driven customer engagement tools. | Investors focus on large customer growth, net revenue retention, and progress toward the company's long-term operating margin targets. |
- Deeply embedded developer-first communications platform with high switching costs
- Improving profitability following a multi-year cost discipline push
- Large base of active customer accounts across industries
- Broad, growing product portfolio spanning security, performance, and developer platforms
- Strong large-customer growth with expanding average contract values
- Global network effect providing a durable infrastructure moat
- Usage-based revenue model can be volatile with customer activity levels
- Competitive pressure from hyperscalers and other CPaaS providers
- Net revenue retention has moderated from earlier hyper-growth levels
- Valuation has historically priced in sustained high growth
- Path to GAAP profitability still maturing relative to revenue scale
- Intensifying competition from major cloud and CDN providers
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.
Full valuation workup with AI Score, Monte Carlo forecast, and bull/bear case — free preview, premium data from $3.99.