Cloudflare Inc (NET)vsPayPal Holdings Inc (PYPL)
NET
Cloudflare Inc
$204.97
-3.30%
TECHNOLOGY · Cap: $72.88B
PYPL
PayPal Holdings Inc
$50.94
-1.57%
FINANCIAL SERVICES · Cap: $45.83B
Smart Verdict
WallStSmart Research — data-driven comparison
PayPal Holdings Inc generates 1430% more annual revenue ($33.17B vs $2.17B). PYPL leads profitability with a 15.8% profit margin vs -4.7%. PYPL appears more attractively valued with a PEG of 0.92. PYPL earns a higher WallStSmart Score of 78/100 (B+).
NET
Hold35
out of 100
Grade: F
PYPL
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-14.2%
Fair Value
$165.80
Current Price
$204.97
$39.17 premium
Intrinsic value data unavailable for PYPL.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.6% year-over-year
Large-cap with strong market position
Attractively priced relative to earnings
Every $100 of equity generates 26 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 39.4% YoY
Generating 2.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Trading at 49.4x book value
ROE of -8.2% — below average capital efficiency
3.7% revenue growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : NET
The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.6% demonstrates continued momentum.
Bull Case : PYPL
The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 15.8% and operating margin at 17.5%. PEG of 0.92 suggests the stock is reasonably priced for its growth.
Bear Case : NET
The primary concerns for NET are PEG Ratio, EPS Growth, Price/Book.
Bear Case : PYPL
The primary concerns for PYPL are Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
NET profiles as a hypergrowth stock while PYPL is a value play — different risk/reward profiles.
NET carries more volatility with a beta of 1.88 — expect wider price swings.
NET is growing revenue faster at 33.6% — sustainability is the question.
PYPL generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
PYPL scores higher overall (78/100 vs 35/100), backed by strong 15.8% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cloudflare Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
CloudFlare, Inc. operates a cloud platform that offers a range of network services to companies around the world. The company is headquartered in San Francisco, California.
PayPal Holdings Inc
FINANCIAL SERVICES · CREDIT SERVICES · USA
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
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