Cloudflare (NET) Competitors

Shopify (NYSE:SHOP) and Cloudflare (NYSE:NET) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their community ranking, institutional ownership, analyst recommendations, earnings, valuation, profitability, risk, dividends and media sentiment.

Does the MarketBeat Community believe in SHOP or NET?

Shopify received 1222 more outperform votes than Cloudflare when rated by MarketBeat users. Likewise, 66.37% of users gave Shopify an outperform vote while only 49.63% of users gave Cloudflare an outperform vote.

Company	Underperform	Outperform
Shopify	Outperform Votes 1423 66.37%	Underperform Votes 721 33.63%
Cloudflare	Outperform Votes 201 49.63%	Underperform Votes 204 50.37%

Which has higher earnings and valuation, SHOP or NET?

Shopify has higher revenue and earnings than Cloudflare. Cloudflare is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$8.88B	13.86	$2.02B	$1.55	61.31
Cloudflare	$1.67B	24.70	-$78.80M	-$0.22	-543.29

Is SHOP or NET more profitable?

Shopify has a net margin of 22.74% compared to Cloudflare's net margin of -4.72%. Shopify's return on equity of 12.00% beat Cloudflare's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Shopify	22.74%	12.00%	9.79%
Cloudflare	-4.72%	-5.52%	-1.67%

Does the media refer more to SHOP or NET?

In the previous week, Shopify had 16 more articles in the media than Cloudflare. MarketBeat recorded 43 mentions for Shopify and 27 mentions for Cloudflare. Cloudflare's average media sentiment score of 1.04 beat Shopify's score of 0.65 indicating that Cloudflare is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Shopify	25 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive
Cloudflare	18 Very Positive mention(s)	3 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer SHOP or NET?

Shopify presently has a consensus price target of $118.83, suggesting a potential upside of 25.05%. Cloudflare has a consensus price target of $134.84, suggesting a potential upside of 12.82%. Given Shopify's stronger consensus rating and higher probable upside, research analysts clearly believe Shopify is more favorable than Cloudflare.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	1 Sell rating(s)	14 Hold rating(s)	25 Buy rating(s)	1 Strong Buy rating(s)	2.63
Cloudflare	3 Sell rating(s)	10 Hold rating(s)	14 Buy rating(s)	0 Strong Buy rating(s)	2.41

Which has more risk & volatility, SHOP or NET?

Shopify has a beta of 2.82, suggesting that its share price is 182% more volatile than the S&P 500. Comparatively, Cloudflare has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Do insiders & institutionals hold more shares of SHOP or NET?

69.3% of Shopify shares are owned by institutional investors. Comparatively, 82.7% of Cloudflare shares are owned by institutional investors. 12.8% of Cloudflare shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Shopify beats Cloudflare on 15 of the 19 factors compared between the two stocks.