NET vs. ZS

Last updated Apr 1, 2026

Compare and contrast key facts about Cloudflare, Inc. (NET) and Zscaler, Inc. (ZS).

Performance

NET vs. ZS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Cloudflare, Inc. (NET) and Zscaler, Inc. (ZS). The values are adjusted to include any dividend payments, if applicable.

NET vs. ZS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
NET Cloudflare, Inc.	4.66%	83.09%	29.33%	84.16%	-65.62%	73.05%	345.43%	-5.22%
ZS Zscaler, Inc.	-37.63%	24.67%	-18.57%	98.00%	-65.18%	60.90%	329.48%	-2.06%

Fundamentals

Market Cap NET : $72.44B ZS : $22.40B
EPS NET : -$0.29 ZS : -$0.43
PS Ratio NET : 33.02 ZS : 7.36
PB Ratio NET : 49.65 ZS : 10.20
Total Revenue (TTM) NET : $2.17B ZS : $3.00B
Gross Profit (TTM) NET : $1.62B ZS : $2.30B
EBITDA (TTM) NET : $41.60M ZS : $56.95M

Returns By Period

In the year-to-date period, NET achieves a 4.66% return, which is significantly higher than ZS's -37.63% return.

NET

• 1D: 6.02%
• 1M: 19.83%
• YTD: 4.66%
• 6M: -3.84%
• 1Y: 83.10%
• 3Y*: 49.58%
• 5Y*: 23.51%
• 10Y*: —

ZS

• 1D: 2.21%
• 1M: -4.56%
• YTD: -37.63%
• 6M: -53.18%
• 1Y: -29.30%
• 3Y*: 6.29%
• 5Y*: -4.41%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

Return for Risk

NET vs. ZS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

NET

NET Risk / Return Rank: 81
NET Sharpe Ratio Rank: 86
NET Sortino Ratio Rank: 82
NET Omega Ratio Rank: 80
NET Calmar Ratio Rank: 80
NET Martin Ratio Rank: 78

ZS

ZS Risk / Return Rank: 18
ZS Sharpe Ratio Rank: 14
ZS Sortino Ratio Rank: 17
ZS Omega Ratio Rank: 16
ZS Calmar Ratio Rank: 25
ZS Martin Ratio Rank: 18

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

NET vs. ZS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Cloudflare, Inc. (NET) and Zscaler, Inc. (ZS). 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.

	NET	ZS	Difference
Sharpe ratio Return per unit of total volatility	1.59	-0.64	+2.23
Sortino ratio Return per unit of downside risk	2.16	-0.68	+2.84
Omega ratio Gain probability vs. loss probability	1.28	0.90	+0.38
Calmar ratio Return relative to maximum drawdown	2.16	-0.53	+2.70
Martin ratio Return relative to average drawdown	5.20	-1.24	+6.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NET vs. ZS - Sharpe Ratio Comparison

The current NET Sharpe Ratio is 1.59, which is higher than the ZS Sharpe Ratio of -0.64. The chart below compares the historical Sharpe Ratios of NET and ZS, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	NET	ZS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.59	-0.64	+2.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	-0.08	+0.43
Sharpe Ratio (All Time) Calculated using the full available price history	0.68	0.35	+0.33

Correlation

The correlation between NET and ZS is 0.68, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

NET vs. ZS - Dividend Comparison

Neither NET nor ZS has paid dividends to shareholders.

Tickers have no history of dividend payments

Drawdowns

NET vs. ZS - Drawdown Comparison

The maximum NET drawdown since its inception was -82.58%, which is greater than ZS's maximum drawdown of -76.41%. Use the drawdown chart below to compare losses from any high point for NET and ZS.

Drawdown Indicators

	NET	ZS	Difference
Max Drawdown Largest peak-to-trough decline	-82.58%	-76.41%	-6.17%
Max Drawdown (1Y) Largest decline over 1 year	-36.76%	-60.40%	+23.64%
Max Drawdown (5Y) Largest decline over 5 years	-82.58%	-76.41%	-6.17%
Current Drawdown Current decline from peak	-18.54%	-61.96%	+43.42%
Average Drawdown Average peak-to-trough decline	-38.20%	-31.96%	-6.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.30%	26.13%	-10.83%

Volatility

NET vs. ZS - Volatility Comparison

Cloudflare, Inc. (NET) has a higher volatility of 14.82% compared to Zscaler, Inc. (ZS) at 14.01%. This indicates that NET's price experiences larger fluctuations and is considered to be riskier than ZS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NET	ZS	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.82%	14.01%	+0.81%
Volatility (6M) Calculated over the trailing 6-month period	39.57%	36.32%	+3.25%
Volatility (1Y) Calculated over the trailing 1-year period	52.62%	46.18%	+6.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	67.28%	53.25%	+14.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	66.98%	57.02%	+9.96%

Financials

NET vs. ZS - Profitability Comparison

The chart below illustrates the profitability comparison between Cloudflare, Inc. and Zscaler, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

NET - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Cloudflare, Inc. reported a gross profit of 452.55M and revenue of 614.51M. Therefore, the gross margin over that period was 73.6%.

ZS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Apr 2026, Zscaler, Inc. reported a gross profit of 624.49M and revenue of 815.75M. Therefore, the gross margin over that period was 76.6%.

NET - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Cloudflare, Inc. reported an operating income of -49.23M and revenue of 614.51M, resulting in an operating margin of -8.0%.

ZS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Apr 2026, Zscaler, Inc. reported an operating income of -51.77M and revenue of 815.75M, resulting in an operating margin of -6.4%.

NET - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Cloudflare, Inc. reported a net income of -12.08M and revenue of 614.51M, resulting in a net margin of -2.0%.

ZS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Apr 2026, Zscaler, Inc. reported a net income of -34.31M and revenue of 815.75M, resulting in a net margin of -4.2%.