In the fast-evolving world of cybersecurity and cloud infrastructure, Cloudflare, Inc. (NET) and CyberArk Software Ltd. (CYBR) stand out as key players. Both companies operate in the software infrastructure industry, focusing on innovative security solutions that protect enterprises worldwide. This comparison explores their market positions, growth strategies, and technological edge to help you decide which company could be the smarter addition to your investment portfolio in 2026.
Table of contents
Companies Overview
I will begin the comparison between Cloudflare and CyberArk by providing an overview of these two companies and their main differences.
Cloudflare Overview
Cloudflare, Inc. is a cloud services provider focused on delivering integrated cloud-based security and performance solutions globally. Its offerings include cloud firewall, DDoS protection, IoT security, content delivery, and reliability services. Founded in 2009 and headquartered in San Francisco, Cloudflare serves diverse industries such as technology, healthcare, finance, and government, positioning itself as a key infrastructure player in the cloud security market.
CyberArk Overview
CyberArk Software Ltd. develops and markets software-based security solutions that protect privileged access and identity management for enterprises worldwide. Founded in 1999 and based in Petah Tikva, Israel, CyberArk offers products including Privileged Access Manager, Endpoint Privilege Manager, and Identity as a Service, targeting sectors like financial services, manufacturing, healthcare, and government. It emphasizes risk reduction through privileged credential security and cloud entitlement management.
Key similarities and differences
Both Cloudflare and CyberArk operate in the software infrastructure security sector, serving global enterprise customers across multiple industries. Cloudflare focuses on comprehensive cloud performance and security services, including network reliability, while CyberArk specializes in privileged access management and identity security solutions. Cloudflare has a larger market cap and employee base, reflecting its broader cloud services scope, whereas CyberArk emphasizes identity-centric security with a more focused product suite.
Income Statement Comparison
This table presents a side-by-side comparison of the key income statement metrics for Cloudflare, Inc. and CyberArk Software Ltd. for the fiscal year ending 2024.
| Metric | Cloudflare, Inc. (NET) | CyberArk Software Ltd. (CYBR) |
|---|---|---|
| Market Cap | 64.5B | 22.9B |
| Revenue | 1.67B | 1.00B |
| EBITDA | 62M | 29M |
| EBIT | -66M | -13M |
| Net Income | -79M | -93M |
| EPS | -0.23 | -2.12 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Cloudflare, Inc.
Cloudflare’s revenue exhibited strong growth from 431M in 2020 to 1.67B in 2024, with net income losses narrowing from -119M to -79M. Gross margins remained robust around 77%, while net margins stayed negative but improved significantly in 2024. The latest year showed accelerated revenue and gross profit growth, alongside improved net margin and EPS, marking a favorable performance shift.
CyberArk Software Ltd.
CyberArk’s revenue rose steadily from 464M in 2020 to 1.00B in 2024, though net income losses deepened overall, hitting -93M in 2024. Gross margin was slightly higher than Cloudflare’s at 79%, but net margins remained more negative at -9.3%. Despite strong revenue and gross profit growth in 2024, net margin and EPS deteriorated, reflecting mixed income statement results for the year.
Which one has the stronger fundamentals?
Cloudflare demonstrates stronger fundamentals with higher growth rates and improving profitability indicators, including narrowing net losses and favorable margin trends. CyberArk shows solid revenue growth but faces declining net income and margins over the period, resulting in a more neutral overall income statement evaluation compared to Cloudflare’s favorable outlook.
Financial Ratios Comparison
The table below presents key financial ratios for Cloudflare, Inc. (NET) and CyberArk Software Ltd. (CYBR) based on their latest fiscal year data from 2024, allowing a straightforward comparison of their financial health and performance metrics.
| Ratios | Cloudflare, Inc. (NET) | CyberArk Software Ltd. (CYBR) |
|---|---|---|
| ROE | -7.53% | -3.94% |
| ROIC | -6.06% | -2.85% |
| P/E | -466.5 | -157.5 |
| P/B | 35.14 | 6.21 |
| Current Ratio | 2.86 | 1.48 |
| Quick Ratio | 2.86 | 1.48 |
| D/E (Debt-to-Equity) | 1.40 | 0.01 |
| Debt-to-Assets | 44.3% | 0.9% |
| Interest Coverage | -29.8 | -17.9 |
| Asset Turnover | 0.51 | 0.30 |
| Fixed Asset Turnover | 2.63 | 51.11 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
Cloudflare, Inc.
Cloudflare exhibits mostly unfavorable ratios, including a negative net margin of -4.72% and a return on equity of -7.53%, signaling profitability and efficiency challenges. The high price-to-book ratio of 35.14 and negative interest coverage raise concerns. The current and quick ratios near 2.86 indicate solid liquidity. Cloudflare does not pay dividends, likely due to ongoing reinvestment in growth and product development.
CyberArk Software Ltd.
CyberArk shows a mix of slightly unfavorable to favorable ratios. Its net margin is negative at -9.34%, and return on equity is -3.94%, reflecting profitability issues. The debt-to-equity ratio is low at 0.01, indicating minimal leverage, which is favorable. The current ratio of 1.48 is neutral, while the quick ratio and fixed asset turnover are favorable. CyberArk also does not pay dividends, possibly focusing on reinvestment and innovation.
Which one has the best ratios?
CyberArk holds a slight advantage with a higher percentage of favorable ratios (35.71%) compared to Cloudflare’s 21.43%. Despite both companies having negative profitability metrics, CyberArk’s lower leverage, better fixed asset turnover, and quick ratio contribute to a slightly better overall ratio profile. Cloudflare faces more significant challenges in profitability and valuation metrics.
Strategic Positioning
This section compares the strategic positioning of Cloudflare and CyberArk, focusing on market position, key segments, and exposure to technological disruption:
Cloudflare, Inc.
- Leading cloud services provider with strong market cap and high competitive pressure
- Offers integrated cloud-based security, performance, reliability, and developer solutions across multiple industries
- Exposure to disruption through cloud infrastructure and security innovation
CyberArk Software Ltd.
- CyberArk operates in software security with smaller market cap and moderate competitive pressure
- Focused on privileged access management, identity services, and SaaS security solutions for various sectors
- Faces disruption risks in identity and access management software but maintains SaaS and cloud-native focus
Cloudflare, Inc. vs CyberArk Software Ltd. Positioning
Cloudflare features a diversified cloud services portfolio serving multiple industries, while CyberArk concentrates on identity and privileged access management software. Cloudflare’s broader product range supports resilience, whereas CyberArk’s specialization targets niche security needs with concentrated exposure.
Which has the best competitive advantage?
Both companies are shedding value with ROIC below WACC; however, Cloudflare shows a growing ROIC trend, indicating improving profitability, while CyberArk’s declining ROIC suggests worsening competitive position.
Stock Comparison
The stock price dynamics of Cloudflare, Inc. (NET) and CyberArk Software Ltd. (CYBR) over the past year reveal strong bullish trends with recent deceleration and notable price fluctuations, reflecting shifting investor sentiment and trading volumes.
Trend Analysis
Cloudflare, Inc. (NET) experienced a bullish trend over the past 12 months with an 87.07% price increase, accompanied by deceleration and a high volatility level (std deviation 52.73). The recent trend shows a 27.29% decline.
CyberArk Software Ltd. (CYBR) also posted a bullish trend with a 77.27% price rise over the year, marked by deceleration and higher volatility (std deviation 82.45). Its recent decline is milder at 12.89%.
Comparing both, NET delivered the highest market performance over the past year but faced a sharper recent downturn. CYBR showed a smaller but still strong gain with less severe recent losses.
Target Prices
Here is the current analyst target consensus for Cloudflare, Inc. and CyberArk Software Ltd.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Cloudflare, Inc. | 300 | 210 | 248.86 |
| CyberArk Software Ltd. | 520 | 440 | 479.22 |
Analysts expect Cloudflare’s stock to appreciate from its current price of 184.17 USD to around 249 USD on average. CyberArk’s consensus target of 479.22 USD also suggests upside potential from the current 453.65 USD.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Cloudflare, Inc. and CyberArk Software Ltd.:
Rating Comparison
Cloudflare, Inc. Rating
- Rating: D+, considered very favorable by analysts
- Discounted Cash Flow Score: 1, very unfavorable
- ROE Score: 1, very unfavorable
- ROA Score: 1, very unfavorable
- Debt To Equity Score: 1, very unfavorable
- Overall Score: 1, very unfavorable
CyberArk Software Ltd. Rating
- Rating: C-, also considered very favorable
- Discounted Cash Flow Score: 3, moderate
- ROE Score: 1, very unfavorable
- ROA Score: 1, very unfavorable
- Debt To Equity Score: 2, moderate
- Overall Score: 1, very unfavorable
Which one is the best rated?
Based strictly on the provided data, CyberArk Software Ltd. holds a slightly better rating (C- vs. D+) and shows moderate scores in discounted cash flow and debt-to-equity compared to Cloudflare’s consistently very unfavorable scores. Both have equal overall scores.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Cloudflare, Inc. and CyberArk Software Ltd.:
Cloudflare, Inc. Scores
- Altman Z-Score: 9.47, indicating strong financial safety in the safe zone.
- Piotroski Score: 2, classified as very weak financial strength.
CyberArk Software Ltd. Scores
- Altman Z-Score: 6.52, indicating strong financial safety in the safe zone.
- Piotroski Score: 3, also classified as very weak financial strength.
Which company has the best scores?
Both companies are in the safe zone for the Altman Z-Score, with Cloudflare showing a higher score. CyberArk has a slightly better Piotroski Score, but both remain in the very weak category. Overall, Cloudflare has the stronger Altman Z-Score, while CyberArk edges ahead marginally in Piotroski.
Grades Comparison
Here is a comparison of the latest reliable grades assigned to Cloudflare, Inc. and CyberArk Software Ltd.:
Cloudflare, Inc. Grades
The following table shows recent grades from reputable financial institutions for Cloudflare, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Buy | Buy | 2026-01-16 |
| UBS | Hold | Neutral | 2026-01-13 |
| Piper Sandler | Hold | Neutral | 2026-01-05 |
| Argus Research | Buy | Buy | 2025-11-10 |
| Susquehanna | Hold | Neutral | 2025-11-03 |
| Citigroup | Buy | Buy | 2025-11-03 |
| Cantor Fitzgerald | Hold | Neutral | 2025-10-31 |
| Stifel | Buy | Buy | 2025-10-31 |
| UBS | Hold | Neutral | 2025-10-31 |
| Keybanc | Buy | Overweight | 2025-10-31 |
Cloudflare’s grades mostly range between Buy and Neutral, with a consensus rating of Buy and a sizable share of analysts maintaining positive outlooks.
CyberArk Software Ltd. Grades
Below are the recent grades from recognized grading companies for CyberArk Software Ltd.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | Buy | Outperform | 2024-10-22 |
| Keybanc | Buy | Overweight | 2024-10-18 |
| Mizuho | Buy | Outperform | 2024-10-17 |
| BTIG | Buy | Buy | 2024-10-09 |
| Barclays | Buy | Overweight | 2024-10-07 |
| Wedbush | Buy | Outperform | 2024-10-01 |
| Jefferies | Buy | Buy | 2024-09-24 |
| DA Davidson | Buy | Buy | 2024-08-09 |
| Rosenblatt | Buy | Buy | 2024-08-09 |
| Susquehanna | Buy | Positive | 2024-08-09 |
CyberArk consistently receives Buy and Outperform grades, reflecting strong confidence from analysts, supported by a consensus rating of Buy.
Which company has the best grades?
CyberArk Software Ltd. has received more consistently high grades such as Outperform and Overweight compared to Cloudflare’s mix of Buy and Neutral ratings. This stronger analyst support could positively influence investor sentiment and confidence in CyberArk’s growth potential.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Cloudflare, Inc. (NET) and CyberArk Software Ltd. (CYBR) based on recent financial and operational data.
| Criterion | Cloudflare, Inc. (NET) | CyberArk Software Ltd. (CYBR) |
|---|---|---|
| Diversification | Primarily cloud services, limited product variety | More diversified with SaaS, subscriptions, licenses, and professional services |
| Profitability | Negative net margin (-4.72%), ROIC -6.06%, shedding value but improving ROIC trend | Negative net margin (-9.34%), ROIC -2.85%, shedding value with declining profitability |
| Innovation | Strong growth in ROIC suggests improving efficiency and innovation | Declining ROIC signals challenges in innovation or operational efficiency |
| Global presence | Significant global reach as a major cloud infrastructure provider | Strong presence, especially in cybersecurity niche markets |
| Market Share | Large market size with $1.67B revenue in 2024 | Smaller revenue base ($0.97B total in 2024) but growing segments in SaaS and subscriptions |
Key takeaways: Cloudflare shows signs of improving profitability despite current losses, supported by focused innovation and global scale. CyberArk, while more diversified, faces profitability headwinds and declining ROIC, suggesting caution for investors prioritizing value creation.
Risk Analysis
Below is a comparative table summarizing key risk metrics for Cloudflare, Inc. (NET) and CyberArk Software Ltd. (CYBR) as of 2024:
| Metric | Cloudflare, Inc. (NET) | CyberArk Software Ltd. (CYBR) |
|---|---|---|
| Market Risk | High beta (1.97), volatile price range (89.42-260) | Moderate beta (0.92), less volatile range (288.63-526.19) |
| Debt level | Debt-to-equity 1.4 (unfavorable), debt/assets 44.3% (neutral) | Debt-to-equity 0.01 (favorable), debt/assets 0.88% (favorable) |
| Regulatory Risk | Moderate; US-based with global operations | Moderate; Israel-based with global operations |
| Operational Risk | Negative net margin (-4.72%) and ROE (-7.53%) indicate operational challenges | Larger negative net margin (-9.34%) and negative ROE (-3.94%) reflect operational strain |
| Environmental Risk | Not significant in current disclosures | Not significant in current disclosures |
| Geopolitical Risk | US-centric but global exposure; moderate geopolitical sensitivity | Israeli base with global sales, higher regional geopolitical risk |
The most impactful risks are operational inefficiencies and market volatility for both companies. Cloudflare’s higher leverage and beta imply higher financial and market risk, while CyberArk benefits from a strong balance sheet but struggles with profitability and geopolitical exposure. Both firms show very weak Piotroski scores, highlighting financial health concerns despite safe Altman Z-scores. Caution and close monitoring of profitability trends and external risks are advised.
Which Stock to Choose?
Cloudflare, Inc. (NET) has demonstrated strong revenue growth of 287% over 2020-2024 and an improving profitability trend despite current negative net margin of -4.72%. Its financial ratios show favorable liquidity but unfavorable profitability and leverage metrics, with a global ratio assessment as unfavorable. The company’s rating is very favorable, though underlying score components suggest financial challenges.
CyberArk Software Ltd. (CYBR) reported a revenue growth of 115% over the same period but faces persistent profitability issues, with a negative net margin of -9.34% and mixed financial ratios. Its global ratios evaluation is slightly unfavorable, reflecting some strengths in debt management but weaknesses in asset turnover. The rating is very favorable, albeit with a moderate discounted cash flow score and weak profitability metrics.
Depending on an investor’s profile, NET may appear more attractive for those prioritizing growth and improving profitability trends, while CYBR could be seen as a potential choice for investors focused on moderate financial stability and debt management. Both companies currently show value destruction in MOAT evaluations but differ in profitability trajectories and financial health indicators.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Cloudflare, Inc. and CyberArk Software Ltd. to enhance your investment decisions:
