NET vs. PANW
NET (Cloudflare, Inc.) and PANW (Palo Alto Networks, Inc.) are both stocks. Both operate in the Software - Infrastructure industry within the Technology sector. Over the past 5 years, NET returned 19.44%/yr vs 35.61%/yr for PANW. A 0.52 correlation means they provide meaningful diversification when combined.
Performance
NET vs. PANW - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, NET achieves a 15.89% return, which is significantly lower than PANW's 51.80% return.
NET
- 1D
- 0.46%
- 1M
- 15.65%
- YTD
- 15.89%
- 6M
- 12.86%
- 1Y
- 32.86%
- 3Y*
- 48.96%
- 5Y*
- 19.44%
- 10Y*
- —
PANW
- 1D
- 0.03%
- 1M
- 15.15%
- YTD
- 51.80%
- 6M
- 45.87%
- 1Y
- 42.47%
- 3Y*
- 33.77%
- 5Y*
- 35.61%
- 10Y*
- 29.12%
NET vs. PANW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
NET Cloudflare, Inc. | 15.89% | 83.09% | 29.33% | 84.16% | -65.62% | 73.05% | 345.43% | -5.22% |
PANW Palo Alto Networks, Inc. | 51.80% | 1.23% | 23.41% | 111.32% | -24.81% | 56.66% | 53.68% | 10.52% |
Correlation
The correlation between NET and PANW is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.53 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.52 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.55 |
Correlation (All Time) Calculated using the full available price history since Sep 13, 2019 | 0.52 |
The correlation between NET and PANW has been stable across timeframes, ranging from 0.52 to 0.55 - a consistent structural relationship.
Fundamentals
NET:
$80.57B
PANW:
$208.04B
NET:
-$0.25
PANW:
$1.17
NET:
34.18
PANW:
18.95
NET:
52.77
PANW:
7.52
NET:
$2.33B
PANW:
$10.61B
NET:
$1.71B
PANW:
$7.63B
NET:
$168.53M
PANW:
$1.33B
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
NET vs. PANW — Risk / Return Rank
NET
PANW
NET vs. PANW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Cloudflare, Inc. (NET) and Palo Alto Networks, Inc. (PANW). 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 | PANW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.50 | ||
| Sortino ratioReturn per unit of downside risk | -0.47 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.21 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.92 | 1.16 | -0.23 |
| Martin ratioReturn relative to average drawdown | 1.98 | 2.62 | -0.64 |
Loading charts...
Drawdowns
NET vs. PANW - Drawdown Comparison
The maximum NET drawdown since its inception was -82.58%, which is greater than PANW's maximum drawdown of -47.98%. Use the drawdown chart below to compare losses from any high point for NET and PANW.
Loading charts...
Drawdown Indicators
| NET | PANW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -82.58% | -47.98% | -34.60% |
Max Drawdown (1Y)Largest decline over 1 year | -36.76% | -36.01% | -0.75% |
Max Drawdown (3Y)Largest decline over 3 years | -45.00% | -36.01% | -8.99% |
Max Drawdown (5Y)Largest decline over 5 years | -82.58% | -36.01% | -46.57% |
Max Drawdown (10Y)Largest decline over 10 years | — | -47.98% | — |
Current DrawdownCurrent decline from peak | -16.20% | -6.94% | -9.26% |
Average DrawdownAverage peak-to-trough decline | -37.52% | -14.68% | -22.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 17.09% | 15.87% | +1.22% |
Volatility
NET vs. PANW - Volatility Comparison
Cloudflare, Inc. (NET) has a higher volatility of 20.99% compared to Palo Alto Networks, Inc. (PANW) at 16.97%. This indicates that NET's price experiences larger fluctuations and is considered to be riskier than PANW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| NET | PANW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 20.99% | 16.97% | +4.02% |
Volatility (6M)Calculated over the trailing 6-month period | 53.96% | 32.33% | +21.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 60.18% | 38.96% | +21.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 68.52% | 41.72% | +26.80% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 67.78% | 38.62% | +29.16% |
Dividends
NET vs. PANW - Dividend Comparison
Neither NET nor PANW has paid dividends to shareholders.
Financials
NET vs. PANW - Financials Comparison
This section allows you to compare key financial metrics between Cloudflare, Inc. and Palo Alto Networks, 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. PANW - Profitability Comparison
NET - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 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%.
PANW - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported a gross profit of 2.03B and revenue of 3.00B. Therefore, the gross margin over that period was 67.6%.
NET - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Cloudflare, Inc. reported an operating income of -61.99M and revenue of 639.76M, resulting in an operating margin of -9.7%.
PANW - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported an operating income of -186.00M and revenue of 3.00B, resulting in an operating margin of -6.2%.
NET - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Cloudflare, Inc. reported a net income of -22.93M and revenue of 639.76M, resulting in a net margin of -3.6%.
PANW - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Palo Alto Networks, Inc. reported a net income of -177.00M and revenue of 3.00B, resulting in a net margin of -5.9%.
Frequently Asked Questions
NET and PANW have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NET has higher volatility (20.99%) compared to PANW (16.97%). In terms of maximum drawdown, NET dropped -82.58% vs PANW's -47.98%.
PANW currently has the higher Sharpe Ratio (1.07 vs 0.57), 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.
Find the right allocation for NET and PANW
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer