Last updated:
LIVE
NET
Cloudflare, Inc. · Technology
$272.31
+21.53% this month
VERSUS
⟷
COMPARE
ZS
Zscaler, Inc. · Technology
$149.82
+20.00% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
NET
2
ZS
2
Comparison scoreboard
MIXED SETUPAI Score
NET ✓51.7
ZS 41.4
1Y Return
NET ✓+37.70%
ZS -48.11%
Fwd P/E
NET 172.50
ZS ✓32.62
Target Up.
NET -6.59%
ZS ✓+28.57%
Op. Margin
NET N/A
ZS -3.28%
Metrics last refreshed: 7/21/2026
Quick take
NET vs ZS: Cloudflare vs Zscaler — Which Cybersecurity Stock Wins?: AI Score, Valuation, Performance and Upside
Cloudflare and Zscaler are both cloud-native security platforms riding the zero-trust enterprise security wave, but from different angles: Zscaler is a pure-play, deeply embedded zero-trust leader focused on secure access, while Cloudflare is a broader network and developer platform adding security as a pillar. Both compete for enterprise security budget and zero-trust architecture decisions.
Use this NET vs ZS comparison to choose your enterprise security cloud investment. Zscaler is the more focused zero-trust pure-play with deeper enterprise security penetration; Cloudflare is a broader platform with more product optionality including AI and developer infrastructure beyond security.
Live analysis · updated 7/21/2026
NET and ZS are closely matched — they split the tracked metrics evenly. NET has delivered stronger 1-year price return (+37.70% vs -48.11%), though ZS has the better forward P/E setup (32.62x vs 172.50x for NET). Analyst consensus implies meaningfully more upside for ZS (+28.57%) than for NET (-6.59%).
Normalized 1Y performance
NET
ZS
Recent returns
NET
ZS
Analyst price targets & sentiment
NET · 31 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.9/5.0)
Price target range
analyst low$136.00
analyst high$322.00
analyst mean$254.36
current price$272.31
-6.6% upside to analyst mean
ZS · 44 analysts
STRONG BUYHOLDSTRONG SELL
Buy (1.8/5.0)
Price target range
analyst high$360.00
analyst mean$192.78
current price$149.82
+28.6% upside to analyst mean
Who should consider this stock?
NET may suit investors who:
- →Want a broader cloud platform with security, performance, and AI/developer infrastructure exposure
- →Believe Cloudflare's network advantage creates a unique competitive moat versus software-only vendors
- →Are comfortable with a longer profitability timeline in exchange for broader platform growth potential
- →See Workers AI as an emerging inference revenue stream that could become significant over time
ZS may suit investors who:
- →Want a focused pure-play zero-trust enterprise security platform with deep customer penetration
- →Believe zero-trust architecture will become the enterprise security standard and Zscaler will be the default choice
- →Value the sticky government and regulated industry customer base providing durable ARR
- →Are comfortable with a high multiple for what may be the defining enterprise security architecture of this decade
Performance & AI score
| Metric | NET | ZS |
|---|---|---|
| AI score | 51.7 | 41.4 |
| AI rank | #409 | #1019 |
| Latest close | $272.31 | $149.82 |
| 1M return | +21.53% | +20.00% |
| 6M return | +47.86% | -29.98% |
| 1Y return | +37.70% | -48.11% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | NET | ZS |
|---|---|---|
| 1Y ago | $13.77K (+37.7%) started 2025-07-21 | $5.19K (-48.1%) started 2025-07-21 |
| 5Y ago | $24.86K (+148.6%) started 2021-07-21 | $6.54K (-34.6%) started 2021-07-20 |
| 10Y ago | $151.28K (+1412.8%) started 2019-09-13 | $45.4K (+354.0%) started 2018-03-16 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | NET | ZS |
|---|---|---|
| Market cap | $96.65B | $24.25B |
| Trailing P/E | N/A | N/A |
| Forward P/E | 172.50 | 32.62 |
| Price/Sales | 41.51 | 22.59 |
| EV/Revenue | 41.08 | 7.11 |
| Analyst target | $254.36 | $192.78 |
| Target upside | -6.59% | +28.57% |
Growth, profitability & risk
| Metric | NET | ZS |
|---|---|---|
| Revenue growth | 33.50% | 25.40% |
| Earnings growth | N/A | N/A |
| EPS growth | N/A | N/A |
| FCF margin | +32.42% | +34.94% |
| Operating margin | N/A | -3.28% |
| Profit margin | -3.72% | -2.44% |
| ROIC proxy | -5.88% | -3.71% |
| Return on equity | -5.88% | -3.71% |
| Dividend yield | 0.00% | N/A |
| Beta | 1.67 | 0.96 |
| Debt/equity | 230.86 | 78.94 |
| Current ratio | 1.96 | 1.86 |
| Quick ratio | 1.90 | 1.72 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
NET max drawdown36.76%
ZS max drawdown64.89%
NET max wkly drop23.58%
ZS max wkly drop27.87%
5Y risk snapshot
NET max drawdown82.58%
ZS max drawdown76.41%
NET max wkly drop39.37%
ZS max wkly drop34.63%
10Y risk snapshot
NET max drawdown82.58%
ZS max drawdown76.41%
NET max wkly drop39.37%
ZS max wkly drop34.63%
Performance metrics by period
| Period | Metric | NET | ZS |
|---|---|---|---|
| 1Y | Growth | +37.70% | -48.06% |
| CAGR | +37.73% | -48.20% | |
| Sharpe ratio | 0.77 | -0.84 | |
| Max drawdown | 36.76% | 64.89% | |
| Max daily drop | 23.62% | 31.52% | |
| Max wkly drop | 23.58% | 27.87% | |
| 5Y | Growth | +148.64% | -34.61% |
| CAGR | +19.98% | -8.15% | |
| Sharpe ratio | 0.54 | 0.06 | |
| Max drawdown | 82.58% | 76.41% | |
| Max daily drop | 23.62% | 31.52% | |
| Max wkly drop | 39.37% | 34.63% | |
| 10Y | Growth | +1412.83% | +354.00% |
| CAGR | +48.65% | +19.88% | |
| Sharpe ratio | 0.86 | 0.53 | |
| Max drawdown | 82.58% | 76.41% | |
| Max daily drop | 23.62% | 31.52% | |
| Max wkly drop | 39.37% | 34.63% |
Business comparison
| Category | NET | ZS |
|---|---|---|
| Company | Cloudflare, Inc. | Zscaler, Inc. |
| Sector | Technology | Technology |
| Industry | N/A | Software - Infrastructure |
| Core business | Global network-as-a-service and security platform providing DDoS protection, CDN, zero-trust security (SASE), serverless computing, and AI infrastructure. One of the world's largest networks by interconnection. | Cloud-native zero-trust security platform built on the Zero Trust Exchange architecture. Products include Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA), and a growing AI-driven threat intelligence layer. |
| Investor focus | Large customer revenue growth, Workers AI platform adoption, SASE and zero-trust product expansion, net revenue retention, and path to GAAP profitability. | Annual recurring revenue and large deal expansion, Zscaler for Workloads adoption, AI-powered security platform differentiation, and operating margin improvement. |
NET strengths
- →Unique global network with PoPs in 300+ cities creates a low-latency performance advantage over software-only security vendors
- →Workers AI and developer platform represent a new AI inference revenue stream beyond security
- →Broad platform approach across security, performance, and developer tools creates deep enterprise expansion potential
ZS strengths
- →Purpose-built zero-trust architecture is purpose-designed for cloud and remote work security — not retrofitted
- →High net revenue retention as customers expand from ZIA to ZPA to data protection and AI security modules
- →Government and highly regulated enterprise penetration provides sticky, long-cycle revenue
Risks to watch — NET
- →Not yet GAAP profitable and requires continued strong execution to justify a high revenue multiple
- →Competes with well-resourced incumbents across every product category (Zscaler, Palo Alto, Akamai)
- →Developer platform monetisation is early and may take longer than expected to contribute materially
Risks to watch — ZS
- →Valuation remains elevated relative to near-term revenue growth
- →Palo Alto Networks and other platform consolidators are aggressively bundling competitive zero-trust products
- →Sales cycle length makes revenue lumpy and sensitive to macro IT spending slowdowns
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