NET vs. NFLX
NET (Cloudflare, Inc.) and NFLX (Netflix, Inc.) are both stocks. NET operates in Software - Infrastructure (Technology), while NFLX operates in Entertainment (Communication Services). Over the past 5 years, NET returned 19.99%/yr vs 5.65%/yr for NFLX. At a 0.42 correlation, their price movements are largely independent.
Performance
NET vs. NFLX - Performance Comparison
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Returns By Period
In the year-to-date period, NET achieves a 38.18% return, which is significantly higher than NFLX's -27.90% return.
NET
- 1D
- -1.89%
- 1M
- 21.58%
- 6M
- 47.92%
- YTD
- 38.18%
- 1Y
- 38.04%
- 3Y*
- 59.95%
- 5Y*
- 19.99%
- 10Y*
- —
- ALL TIME*
- 48.68%
NFLX
- 1D
- -1.96%
- 1M
- -12.64%
- 6M
- -23.18%
- YTD
- -27.90%
- 1Y
- -44.10%
- 3Y*
- 16.50%
- 5Y*
- 5.65%
- 10Y*
- 22.91%
- ALL TIME*
- 30.17%
NET vs. NFLX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
NET Cloudflare, Inc. | 38.18% | 83.09% | 29.33% | 84.16% | -65.62% | 73.05% | 345.43% | -5.22% |
NFLX Netflix, Inc. | -27.90% | 5.19% | 83.07% | 65.11% | -51.05% | 11.41% | 67.11% | 12.02% |
Correlation
The correlation between NET and NFLX is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.09 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.31 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since Sep 13, 2019 | 0.42 |
Over the past year, the correlation between NET and NFLX has dropped to 0.09 - well below their long-term average of 0.42, suggesting their price drivers have been diverging.
Fundamentals
NET:
$96.67B
NFLX:
$284.65B
NET:
-$0.25
NFLX:
$3.17
NET:
40.79
NFLX:
6.02
NET:
62.92
NFLX:
9.55
NET:
$2.33B
NFLX:
$48.37B
NET:
$1.71B
NFLX:
$23.76B
NET:
$168.53M
NFLX:
$30.55B
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Return for Risk
NET vs. NFLX — Risk / Return Rank
NET
NFLX
NET vs. NFLX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Cloudflare, Inc. (NET) and Netflix, Inc. (NFLX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| NET | NFLX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.91 | ||
| Sortino ratioReturn per unit of downside risk | +3.16 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 0.75 | +0.41 |
| Calmar ratioReturn relative to maximum drawdown | 1.04 | -0.95 | +1.99 |
| Martin ratioReturn relative to average drawdown | 2.19 | -1.76 | +3.95 |
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Drawdowns
NET vs. NFLX - Drawdown Comparison
The maximum NET drawdown since its inception was -82.58%, roughly equal to the maximum NFLX drawdown of -81.99%. Use the drawdown chart below to compare losses from any high point for NET and NFLX.
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Drawdown Indicators
| NET | NFLX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.58% | -81.99% | -0.59% |
Max Drawdown (1Y)Largest decline over 1 year | -36.76% | -46.49% | +9.73% |
Max Drawdown (3Y)Largest decline over 3 years | -45.00% | -49.52% | +4.52% |
Max Drawdown (5Y)Largest decline over 5 years | -82.58% | -75.95% | -6.63% |
Max Drawdown (10Y)Largest decline over 10 years | — | -75.95% | — |
Current DrawdownCurrent decline from peak | -3.31% | -49.52% | +46.21% |
Average DrawdownAverage peak-to-trough decline | -37.12% | -24.98% | -12.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 17.42% | 25.06% | -7.64% |
Volatility
NET vs. NFLX - Volatility Comparison
Cloudflare, Inc. (NET) and Netflix, Inc. (NFLX) have volatilities of 12.76% and 13.34%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NET | NFLX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.76% | 13.34% | -0.58% |
Volatility (6M)Calculated over the trailing 6-month period | 54.33% | 27.81% | +26.52% |
Volatility (1Y)Calculated over the trailing 1-year period | 60.59% | 34.79% | +25.80% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 68.72% | 43.50% | +25.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 67.51% | 41.38% | +26.13% |
Dividends
NET vs. NFLX - Dividend Comparison
Neither NET nor NFLX has paid dividends to shareholders.
Financials
NET vs. NFLX - Financials Comparison
This section allows you to compare key financial metrics between Cloudflare, Inc. and Netflix, Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
NET vs. NFLX - Profitability Comparison
NET - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Cloudflare, Inc. reported a gross profit of 455.60M and revenue of 639.76M. Therefore, the gross margin over that period was 71.2%.
NFLX - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Netflix, Inc. reported a gross profit of 6.52B and revenue of 12.56B. Therefore, the gross margin over that period was 51.9%.
NET - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Cloudflare, Inc. reported an operating income of -61.99M and revenue of 639.76M, resulting in an operating margin of -9.7%.
NFLX - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Netflix, Inc. reported an operating income of 4.19B and revenue of 12.56B, resulting in an operating margin of 33.4%.
NET - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Cloudflare, Inc. reported a net income of -22.93M and revenue of 639.76M, resulting in a net margin of -3.6%.
NFLX - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Netflix, Inc. reported a net income of 3.40B and revenue of 12.56B, resulting in a net margin of 27.1%.
Frequently Asked Questions
NET and NFLX have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NFLX has higher volatility (13.34%) compared to NET (12.76%). In terms of maximum drawdown, NET dropped -82.58% vs NFLX's -81.99%.
NET currently has the higher Sharpe Ratio (0.63 vs -1.27), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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