NOW vs. NET

Last updated Jun 9, 2026

NOW (ServiceNow, Inc) and NET (Cloudflare, Inc.) are both stocks. Both are in the Technology sector — NOW in Software - Application, NET in Software - Infrastructure. Over the past 5 years, NOW returned 4.20%/yr vs 22.42%/yr for NET. A 0.58 correlation means they provide meaningful diversification when combined.

Performance

NOW vs. NET - Performance Comparison

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

Returns By Period

In the year-to-date period, NOW achieves a -25.46% return, which is significantly lower than NET's 25.69% return.

NOW

• 1D: 1.55%
• 1M: 25.24%
• YTD: -25.46%
• 6M: -33.11%
• 1Y: -44.58%
• 3Y*: 2.25%
• 5Y*: 4.20%
• 10Y*: 22.66%

NET

• 1D: -0.93%
• 1M: 26.34%
• YTD: 25.69%
• 6M: 20.37%
• 1Y: 37.91%
• 3Y*: 57.17%
• 5Y*: 22.42%
• 10Y*: —

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

NOW vs. NET - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
NOW ServiceNow, Inc	-25.46%	-27.75%	50.05%	81.96%	-40.18%	17.93%	94.97%	9.93%
NET Cloudflare, Inc.	25.69%	83.09%	29.33%	84.16%	-65.62%	73.05%	345.43%	-5.22%

Correlation

The correlation between NOW and NET is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (All Time) Calculated using the full available price history since Sep 13, 2019	0.58

The correlation between NOW and NET shifts across timeframes, from 0.39 (1 year) to 0.63 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap NOW : $118.76B NET : $87.38B
EPS NOW : $1.68 NET : -$0.25
PS Ratio NOW : 8.56 NET : 37.07
PB Ratio NOW : 8.75 NET : 57.23
Total Revenue (TTM) NOW : $13.96B NET : $2.33B
Gross Profit (TTM) NOW : $10.69B NET : $1.71B
EBITDA (TTM) NOW : $2.80B NET : $168.53M

Return for Risk

NOW vs. NET — Risk / Return Rank

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

NOW

NOW Risk / Return Rank: 10
NOW Sharpe Ratio Rank: 7
NOW Sortino Ratio Rank: 9
NOW Omega Ratio Rank: 9
NOW Calmar Ratio Rank: 14
NOW Martin Ratio Rank: 10

NET

NET Risk / Return Rank: 62
NET Sharpe Ratio Rank: 64
NET Sortino Ratio Rank: 59
NET Omega Ratio Rank: 61
NET Calmar Ratio Rank: 63
NET Martin Ratio Rank: 63

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.

NOW vs. NET - Risk-Adjusted Trends Comparison

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

	NOW	NET	Difference
Sharpe ratio: Return per unit of total volatility	-0.90	0.64	-1.54
Sortino ratio: Return per unit of downside risk	-1.24	1.17	-2.41
Omega ratio: Gain probability vs. loss probability	0.84	1.17	-0.33
Calmar ratio: Return relative to maximum drawdown	-0.74	1.04	-1.78
Martin ratio: Return relative to average drawdown	-1.33	2.24	-3.57
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NOW vs. NET - Sharpe Ratio Comparison

The current NOW Sharpe Ratio is -0.90, which is lower than the NET Sharpe Ratio of 0.64. The chart below compares the historical Sharpe Ratios of NOW and NET, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	NOW	NET	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.90	0.64	-1.54
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.10	0.33	-0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.61	0.71	-0.10

Drawdowns

NOW vs. NET - Drawdown Comparison

The maximum NOW drawdown since its inception was -64.54%, smaller than the maximum NET drawdown of -82.58%. Use the drawdown chart below to compare losses from any high point for NOW and NET.

Drawdown Indicators

	NOW	NET	Difference
Max Drawdown Largest peak-to-trough decline	-64.54%	-82.58%	+18.04%
Max Drawdown (1Y) Largest decline over 1 year	-60.28%	-36.76%	-23.52%
Max Drawdown (3Y) Largest decline over 3 years	-64.54%	-45.00%	-19.54%
Max Drawdown (5Y) Largest decline over 5 years	-64.54%	-82.58%	+18.04%
Max Drawdown (10Y) Largest decline over 10 years	-64.54%	—	—
Current Drawdown Current decline from peak	-51.22%	-9.12%	-42.10%
Average Drawdown Average peak-to-trough decline	-13.74%	-37.59%	+23.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	33.44%	16.97%	+16.47%

Volatility

NOW vs. NET - Volatility Comparison

The current volatility for ServiceNow, Inc (NOW) is 24.74%, while Cloudflare, Inc. (NET) has a volatility of 33.91%. This indicates that NOW experiences smaller price fluctuations and is considered to be less risky than NET based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NOW	NET	Difference
Volatility (1M) Calculated over the trailing 1-month period	24.74%	33.91%	-9.17%
Volatility (6M) Calculated over the trailing 6-month period	46.58%	53.25%	-6.67%
Volatility (1Y) Calculated over the trailing 1-year period	49.79%	59.59%	-9.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.41%	68.44%	-25.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.82%	67.78%	-26.96%

Dividends

NOW vs. NET - Dividend Comparison

Neither NOW nor NET has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

NOW vs. NET - Profitability Comparison

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

NOW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported a gross profit of 2.83B and revenue of 3.77B. Therefore, the gross margin over that period was 75.1%.

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%.

NOW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported an operating income of 503.00M and revenue of 3.77B, resulting in an operating margin of 13.3%.

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%.

NOW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, ServiceNow, Inc reported a net income of 469.00M and revenue of 3.77B, resulting in a net margin of 12.4%.

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%.

Frequently Asked Questions

Can I hold both NOW and NET in my portfolio?

NOW and NET have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NOW or NET?

NET has higher volatility (33.91%) compared to NOW (24.74%). In terms of maximum drawdown, NOW dropped -64.54% vs NET's -82.58%.

Which has better risk-adjusted returns?

NET currently has the higher Sharpe Ratio (0.64 vs -0.90), 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.