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Stock Comparison · Industry comparison · Software - Infrastructure

Cloudflare vs Zscaler: Which Stock Looks Stronger in 2026?

Zscaler leads structurally, with valuation as the clearest single gap between the two profiles. Cloudflare still leads on growth and stability, which keeps the comparison from looking entirely one-sided. In the market, Cloudflare carries the stronger setup — intact trend against Zscaler's broken trend. That leaves a split case: the structural lead stays with Zscaler, but the market is not currently confirming it.

The comparison is based on similar long-term financial trajectories, not sector labels.

Updated 2026-04-05

Most of the separation is still concentrated in valuation. The overall score gap is 11 points in favour of Zscaler, Inc..

INDUSTRY COMPARISON

Both operate in: Software - Infrastructure

This comparison is based on industry proximity, not on functional trajectory similarity. NET and ZS share the same industry classification.

For a similarity-based comparison, see how Cloudflare and Zscaler each position within their functional peer groups in AssetNext.

Peer-Relative Score
NET
Cloudflare, Inc.
31
Peer-Score
Signal qualityHigh
vs
ZS
Zscaler, Inc.
42
Peer-Score
Signal qualityHigh

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

Pricing shapes this comparison more than a broad operating gap.

Dimension spread: NET vs ZS Profitability 6 8 Stability 37 26 Valuation 13 62 Growth 90 80 NET ZS
Gap Ranking
#1 Valuation +49
#2 Stability +11
#3 Growth +10
#4 Profitability +2
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for NET and ZS Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer NETZS Relative valuation Structural strength

The two profiles are relatively close, but the price setup still leans toward Zscaler, Inc..

Valuation position uses Forward P/E where available.

Relative Position vs Comparable Companies
Valuation
Zscaler, Inc. sits in the stronger part of the group on valuation, while Cloudflare, Inc. is closer to mid-pack.
Stability
Both sit in the weaker half on stability, with Cloudflare, Inc. still coming out ahead.
Valuation — Dominant Gap
NET
13
ZS
62
Gap+49in favour of ZS

The multiple-based pricing edge comes from a forward P/E that is 113 turns lower.

What keeps the gap from being one-sided

On the market side, Cloudflare carries the stronger trend while Zscaler's trend has broken — the market setup does not confirm the structural advantage.

What this means for the comparison

Valuation clearly separates the pair, while the broader read stays strong rather than one-way.

Explore full peer positioning in AssetNext

Break down the NET vs ZS comparison across all dimensions with the full interactive tool.

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Similar valuation-driven comparisons

Explore how NET and ZS each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.