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 4 of 5 key metrics in this comparison. TWLO leads on both 1-year return (+153.48%) and forward P/E quality (33.41x 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 similar upside for both: +12.94% for TWLO and +11.24% for NET.
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 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 scorei | 59.7 | 66.6 |
| AI ranki | #235 | #94 |
| Latest closei | $273.40 | $316.32 |
| 1M returni | +12.90% | -3.33% |
| 3M returni | +32.27% | +16.10% |
| 6M returni | +99.62% | +60.26% |
| 1Y returni | +153.48% | +45.51% |
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 | $25.74K (+157.4%) started 2025-10-16 | $14.96K (+49.6%) started 2025-10-16 |
| 5Y ago | $7.57K (-24.3%) started 2021-10-18 | $17.5K (+75.0%) started 2021-10-18 |
| 10Y ago | $61.51K (+515.1%) started 2016-10-17 | $175.73K (+1657.3%) started 2019-09-13 |
Hypothetical — past performance does not guarantee future results.
| Metric | TWLO | NET |
|---|---|---|
| Market capi | $34.82B | $106.77B |
| Trailing P/Ei | 31.28 | N/A |
| Forward P/Ei | 33.41 | 179.44 |
| Price/Salesi | N/A | 42.56 |
| EV/Revenuei | 5.96 | 42.24 |
| Analyst targeti | $256.10 | $333.55 |
| Target upsidei | +12.94% | +11.24% |
| Metric | TWLO | NET |
|---|---|---|
| Revenue growthi | 22.00% | 35.90% |
| Earnings growthi | 4671.50% | N/A |
| EPS growthi | +4671.50% | N/A |
| FCF margini | +17.13% | +27.54% |
| Operating margini | 7.83% | -7.60% |
| Profit margini | 20.61% | -8.21% |
| ROIC proxyi | 13.50% | -14.43% |
| Return on equityi | 13.50% | -14.43% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | N/A |
| Dividend growth streaki | N/A | N/A |
| Betai | 1.38 | 1.66 |
| Debt/equityi | 11.87 | 217.86 |
| Current ratioi | 4.62 | 1.82 |
| Quick ratioi | 4.21 | 1.75 |
Over the past year, TWLO and NET have moved moderately in the same direction (correlation of 0.49), 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 | TWLO | NET |
|---|---|---|---|
| 1Y | Growthi | +157.37% | +49.63% |
| CAGRi | +157.81% | +49.74% | |
| Volatilityi | 62.75% | 64.81% | |
| Sharpe ratioi | 1.74 | 0.89 | |
| Sortino ratioi | 3.35 | 1.28 | |
| Max drawdowni | 24.73% | 36.76% | |
| Current drawdowni | 9.25% | 12.36% | |
| Avg drawdowni | 9.11% | 14.51% | |
| Ulcer Indexi | 11.37% | 17.63% | |
| Max daily dropi | 8.94% | 23.62% | |
| Max wkly dropi | 18.19% | 23.58% | |
| 5Y | Growthi | -24.32% | +74.98% |
| CAGRi | -5.43% | +11.86% | |
| Volatilityi | 60.86% | 69.05% | |
| Sharpe ratioi | 0.14 | 0.44 | |
| Sortino ratioi | 0.20 | 0.65 | |
| Max drawdowni | 88.42% | 82.58% | |
| Current drawdowni | 25.95% | 12.36% | |
| Avg drawdowni | 69.67% | 47.23% | |
| Ulcer Indexi | 71.87% | 53.90% | |
| Max daily dropi | 34.61% | 23.62% | |
| Max wkly dropi | 43.47% | 39.37% | |
| 10Y | Growthi | +515.07% | +1657.33% |
| CAGRi | +19.93% | +49.82% | |
| Volatilityi | 59.77% | 67.21% | |
| Sharpe ratioi | 0.53 | 0.87 | |
| Sortino ratioi | 0.79 | 1.31 | |
| Max drawdowni | 90.36% | 82.58% | |
| Current drawdowni | 38.35% | 12.36% | |
| Avg drawdowni | 47.44% | 36.00% | |
| Ulcer Indexi | 56.72% | 45.73% | |
| Max daily dropi | 34.61% | 23.62% | |
| Max wkly dropi | 43.47% | 39.37% |
| Category | TWLO | NET |
|---|---|---|
| Company | Twilio Inc. | Cloudflare, Inc. |
| Sector | Technology | Technology |
| Industry | Software - Infrastructure | 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
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