WallStSmart

Cloudflare Inc (NET)vsSTMicroelectronics NV ADR (STM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

STMicroelectronics NV ADR generates 471% more annual revenue ($12.38B vs $2.17B). STM leads profitability with a 1.2% profit margin vs -4.7%. STM appears more attractively valued with a PEG of 0.61. STM earns a higher WallStSmart Score of 43/100 (D).

NET

Hold

35

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 4.3Quality: 5.0

STM

Hold

43

out of 100

Grade: D

Growth: 4.0Profit: 4.0Value: 4.0Quality: 6.0
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NETOvervalued (-14.4%)

Margin of Safety

-14.4%

Fair Value

$165.50

Current Price

$193.52

$28.02 premium

UndervaluedFair: $165.50Overvalued
STMSignificantly Overvalued (-30.0%)

Margin of Safety

-30.0%

Fair Value

$26.89

Current Price

$64.38

$37.49 premium

UndervaluedFair: $26.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NET2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
33.6%10/10

Revenue surging 33.6% year-over-year

Market CapQuality
$90.74B9/10

Large-cap with strong market position

STM3 strengths · Avg: 8.3/10
Market CapQuality
$57.65B9/10

Large-cap with strong market position

PEG RatioValuation
0.618/10

Growing faster than its price suggests

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Areas to Watch

NET4 concerns · Avg: 3.0/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
46.6x2/10

Trading at 46.6x book value

Return on EquityProfitability
-8.2%2/10

ROE of -8.2% — below average capital efficiency

STM4 concerns · Avg: 3.0/10
Return on EquityProfitability
0.9%3/10

ROE of 0.9% — below average capital efficiency

Profit MarginProfitability
1.2%3/10

1.2% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : NET

The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.6% demonstrates continued momentum.

Bull Case : STM

The strongest argument for STM centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.61 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 : STM

The primary concerns for STM are Return on Equity, Profit Margin, Operating Margin. A P/E of 405.4x leaves little room for execution misses. Thin 1.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

NET profiles as a hypergrowth stock while STM is a growth play — different risk/reward profiles.

NET carries more volatility with a beta of 1.67 — expect wider price swings.

NET is growing revenue faster at 33.6% — sustainability is the question.

STM generates stronger free cash flow (155M), providing more financial flexibility.

Bottom Line

STM scores higher overall (43/100 vs 35/100) and 23.0% revenue growth. Both earn "Hold" 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.

STMicroelectronics NV ADR

TECHNOLOGY · SEMICONDUCTORS · USA

STMicroelectronics NV designs, develops, manufactures and markets semiconductor products in Europe, the Middle East, Africa, the Americas and Asia Pacific. The company is headquartered in Geneva, Switzerland.

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