Cloudflare Inc (NET)vsWaters Corporation (WAT)
NET
Cloudflare Inc
$268.73
+0.46%
TECHNOLOGY · Cap: $96.38B
WAT
Waters Corporation
$365.36
-2.95%
HEALTHCARE · Cap: $34.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Waters Corporation generates 62% more annual revenue ($3.77B vs $2.33B). WAT leads profitability with a 11.9% profit margin vs -3.7%. WAT appears more attractively valued with a PEG of 1.60. WAT earns a higher WallStSmart Score of 50/100 (C-).
NET
Hold35
out of 100
Grade: F
WAT
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-60.1%
Fair Value
$167.77
Current Price
$268.73
$100.96 premium
Margin of Safety
-84.6%
Fair Value
$178.29
Current Price
$365.36
$187.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.5% year-over-year
Large-cap with strong market position
Revenue surging 91.4% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
Trading at 62.2x book value
Expensive relative to growth rate
Trading at 8.5x book value
ROE of 2.9% — below average capital efficiency
Operating margin of 2.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : NET
The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.5% demonstrates continued momentum.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.4% 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 : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 45.2x leaves little room for execution misses.
Key Dynamics to Monitor
NET profiles as a hypergrowth stock while WAT is a growth play — different risk/reward profiles.
NET carries more volatility with a beta of 1.67 — expect wider price swings.
WAT is growing revenue faster at 91.4% — sustainability is the question.
NET generates stronger free cash flow (84M), providing more financial flexibility.
Bottom Line
WAT scores higher overall (50/100 vs 35/100) and 91.4% revenue growth. Both earn "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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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