WallStSmart

Cloudflare Inc (NET)vsWestern Digital Corporation (WDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Western Digital Corporation generates 406% more annual revenue ($11.78B vs $2.33B). WDC leads profitability with a 55.3% profit margin vs -3.7%. WDC appears more attractively valued with a PEG of 0.53. WDC earns a higher WallStSmart Score of 80/100 (A-).

NET

Hold

35

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 3.7Quality: 3.5
Piotroski: 2/9Altman Z: 0.68

WDC

Exceptional Buy

80

out of 100

Grade: A-

Growth: 7.3Profit: 9.5Value: 5.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NETSignificantly Overvalued (-60.1%)

Margin of Safety

-60.1%

Fair Value

$167.77

Current Price

$268.73

$100.96 premium

UndervaluedFair: $167.77Overvalued

Intrinsic value data unavailable for WDC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NET2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
33.5%10/10

Revenue surging 33.5% year-over-year

Market CapQuality
$96.38B9/10

Large-cap with strong market position

WDC6 strengths · Avg: 10.0/10
Market CapQuality
$204.78B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
67.0%10/10

Every $100 of equity generates 67 in profit

Profit MarginProfitability
55.3%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

Revenue GrowthGrowth
45.5%10/10

Revenue surging 45.5% year-over-year

EPS GrowthGrowth
482.9%10/10

Earnings expanding 482.9% YoY

Areas to Watch

NET4 concerns · Avg: 3.3/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Price/BookValuation
62.2x2/10

Trading at 62.2x book value

WDC3 concerns · Avg: 3.3/10
P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

Price/BookValuation
27.5x2/10

Trading at 27.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : NET

The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.5% demonstrates continued momentum.

Bull Case : WDC

The strongest argument for WDC centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 55.3% and operating margin at 37.0%. Revenue growth of 45.5% demonstrates continued momentum.

Bear Case : NET

The primary concerns for NET are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 2.31 is elevated, increasing financial risk.

Bear Case : WDC

The primary concerns for WDC are P/E Ratio, Altman Z-Score, Price/Book.

Key Dynamics to Monitor

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

WDC carries more volatility with a beta of 2.16 — expect wider price swings.

WDC is growing revenue faster at 45.5% — sustainability is the question.

WDC generates stronger free cash flow (978M), providing more financial flexibility.

Bottom Line

WDC scores higher overall (80/100 vs 35/100), backed by strong 55.3% margins and 45.5% revenue growth. Both earn "Exceptional 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.

Western Digital Corporation

TECHNOLOGY · COMPUTER HARDWARE · USA

Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.

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