In the rapidly evolving software infrastructure sector, Cloudflare, Inc. (NET) and Informatica Inc. (INFA) stand out as key players driving innovation in cloud services and data management. Both companies address the growing demand for secure, scalable, and intelligent solutions, yet they approach this challenge from different angles—Cloudflare focuses on cloud security and performance, while Informatica specializes in AI-powered data integration and governance. This analysis will help you decide which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Cloudflare and Informatica by providing an overview of these two companies and their main differences.
Cloudflare Overview
Cloudflare, Inc. operates as a cloud services provider offering integrated cloud-based security and performance solutions globally. Its products secure platforms such as public and private clouds, SaaS applications, and IoT devices, including cloud firewalls and distributed denial of service protection. The company also delivers content delivery, intelligent routing, and reliability solutions, serving industries like technology, healthcare, and financial services. Founded in 2009, it is headquartered in San Francisco and has a market cap of $64.5B.
Informatica Overview
Informatica Inc. develops an AI-powered platform designed to connect, manage, and unify enterprise data across multi-cloud and hybrid systems. Its suite includes data integration, API management, data quality, master data management, and governance products aimed at ensuring accurate and compliant data for analytics and business processes. Founded in 1993, Informatica is based in Redwood City and holds a market cap of $7.5B, focusing primarily on large-scale data management for enterprises.
Key similarities and differences
Both Cloudflare and Informatica operate in the software infrastructure sector, emphasizing cloud-related services. Cloudflare specializes in security and performance optimization for internet applications and devices, while Informatica focuses on data integration and governance platforms powered by AI. Cloudflare serves a broad range of industries with network security and delivery solutions, whereas Informatica targets enterprise data management with a comprehensive set of interoperable data products. Their market caps and employee counts also differ significantly, reflecting distinct scale and focus areas.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Cloudflare, Inc. and Informatica Inc. for the fiscal year 2024.
| Metric | Cloudflare, Inc. (NET) | Informatica Inc. (INFA) |
|---|---|---|
| Market Cap | 64.5B | 7.5B |
| Revenue | 1.67B | 1.64B |
| EBITDA | 62M | 339M |
| EBIT | -66M | 199M |
| Net Income | -79M | 10M |
| EPS | -0.23 | 0.033 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Cloudflare, Inc.
Cloudflare’s revenue increased significantly from $431M in 2020 to $1.67B in 2024, reflecting strong growth momentum. Despite this, the company reported negative net income throughout the period, though losses narrowed from -$260M in 2021 to -$79M in 2024. Gross margins remained robust at 77.3%, but EBIT and net margins stayed negative, signaling ongoing profitability challenges. The latest year showed notable improvement in margins and earnings, with revenue growth accelerating.
Informatica Inc.
Informatica’s revenue grew steadily from $1.32B in 2020 to $1.64B in 2024, with more moderate annual increases. The firm turned from losses to a small net profit of $9.9M in 2024 after a substantial net loss in 2023. It maintained a high gross margin above 80% and achieved positive EBIT and net margins in 2024. However, revenue growth slowed recently, though profitability metrics improved significantly, with EBIT expanding 168% year-over-year.
Which one has the stronger fundamentals?
Both companies display favorable income statement trends with solid gross margins and improving profitability. Cloudflare exhibits higher revenue growth and margin improvements but remains unprofitable at the net income level. Informatica has achieved profitability and positive EBIT margins, though growth is slower. Thus, Cloudflare shows rapid expansion with ongoing losses, while Informatica reflects more stable earnings with moderate growth.
Financial Ratios Comparison
This table presents a side-by-side comparison of key financial ratios for Cloudflare, Inc. (NET) and Informatica Inc. (INFA) based on their most recent fiscal year 2024 data.
| Ratios | Cloudflare, Inc. (NET) | Informatica Inc. (INFA) |
|---|---|---|
| ROE | -7.53% | 0.43% |
| ROIC | -6.06% | 0.56% |
| P/E | -466.5 | 787.9 |
| P/B | 35.1 | 3.39 |
| Current Ratio | 2.86 | 1.82 |
| Quick Ratio | 2.86 | 1.82 |
| D/E | 1.40 | 0.81 |
| Debt-to-Assets | 44.3% | 35.2% |
| Interest Coverage | -29.8 | 0.87 |
| Asset Turnover | 0.51 | 0.31 |
| Fixed Asset Turnover | 2.63 | 8.75 |
| Payout Ratio | 0 | 0.12% |
| Dividend Yield | 0 | 0.00015% |
Interpretation of the Ratios
Cloudflare, Inc.
Cloudflare’s financial ratios largely appear weak, with unfavorable net margin (-4.72%), ROE (-7.53%), ROIC (-6.06%), and interest coverage (-12.64). The company shows a high price-to-book ratio (35.14) and debt-to-equity of 1.4, indicating leverage concerns. Liquidity ratios (current and quick at 2.86) are favorable. Cloudflare does not pay dividends, reflecting its reinvestment strategy amid negative profitability.
Informatica Inc.
No ratio data is available for Informatica, preventing any financial ratio assessment. Dividend information is also missing, suggesting either no dividend payments or insufficient data to analyze shareholder returns. This lack of data limits the ability to compare its financial health or distribution policy with peers.
Which one has the best ratios?
Based on the available data, Cloudflare shows predominantly unfavorable ratios with some liquidity strengths, while no ratio information is provided for Informatica. This makes it impossible to definitively state which company has better ratios; however, Cloudflare’s current financial metrics signal caution due to profitability and leverage weaknesses.
Strategic Positioning
This section compares the strategic positioning of Cloudflare and Informatica, focusing on Market position, Key segments, and Exposure to technological disruption:
Cloudflare, Inc.
- Leading cloud services provider with broad global reach, facing strong competition in infrastructure software.
- Focuses on cloud security, performance, reliability, and developer solutions across multiple industries.
- Positioned in cloud security and networking, adapting to evolving cloud and IoT technological trends.
Informatica Inc.
- Mid-sized AI-powered data management platform with competitive pressure in enterprise software.
- Concentrates on data integration, API management, and governance with subscription and services revenue.
- Emphasizes AI-driven data management, exposed to disruption in multi-cloud and hybrid data environments.
Cloudflare vs Informatica Positioning
Cloudflare offers a diversified cloud infrastructure and security portfolio serving various industries, while Informatica focuses on a specialized AI-powered data management platform. Cloudflare’s broad solutions contrast with Informatica’s concentration on data integration and governance.
Which has the best competitive advantage?
Cloudflare shows a slightly unfavorable moat, currently destroying value but improving profitability, while Informatica’s moat data is unavailable, preventing a definitive competitive advantage assessment.
Stock Comparison
The past year revealed contrasting stock movements: Cloudflare, Inc. demonstrated a strong bullish trend despite recent deceleration, while Informatica Inc. faced a bearish trend with accelerating decline, reflecting distinct trading dynamics.
Trend Analysis
Cloudflare, Inc. (NET) experienced an 87.07% price increase over the past 12 months, indicating a bullish trend with deceleration and high volatility (std deviation 52.73). The stock peaked at 253.3 and troughed at 67.69.
Informatica Inc. (INFA) showed a -12.68% price change over the same period, marking a bearish trend with accelerating decline and lower volatility (std deviation 4.46). Its highest and lowest prices were 38.48 and 16.67 respectively.
Comparing both, Cloudflare, Inc. delivered the highest market performance with a significant positive price change, whereas Informatica Inc. faced a notable negative trend over the past year.
Target Prices
The target consensus for Cloudflare, Inc. and Informatica Inc. reflects varied analyst expectations.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Cloudflare, Inc. | 300 | 210 | 248.86 |
| Informatica Inc. | 27 | 27 | 27 |
Analysts expect Cloudflare’s stock to appreciate significantly, with a consensus target about 35% above the current price of $184.17. Informatica’s target price matches its current $24.79, indicating a stable outlook.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Cloudflare, Inc. and Informatica Inc.:
Rating Comparison
Cloudflare, Inc. Rating
- Rating: D+, classified as 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
Informatica Inc. Rating
- No rating data available
- No discounted cash flow score provided
- No ROE score provided
- No ROA score provided
- No debt to equity score provided
- No overall score provided
Which one is the best rated?
Based strictly on the available data, Cloudflare, Inc. has a complete rating profile with a D+ rating and very unfavorable scores across all financial metrics. Informatica Inc. lacks any rating or score information, making Cloudflare the only rated company in this comparison.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Cloudflare, Inc. and Informatica Inc.:
NET Scores
- Altman Z-Score: 9.47, indicating a safe zone with very low bankruptcy risk.
- Piotroski Score: 2, reflecting very weak financial strength and value potential.
INFA Scores
- Altman Z-Score: 1.94, placing the company in the grey zone with moderate bankruptcy risk.
- Piotroski Score: 6, showing average financial strength and investment quality.
Which company has the best scores?
Cloudflare, Inc. has a much stronger Altman Z-Score, indicating financial stability, but a very weak Piotroski Score. Informatica Inc. scores lower on bankruptcy risk but has a better Piotroski Score, suggesting stronger financial health overall.
Grades Comparison
Here is the comparison of recent grades and consensus ratings for Cloudflare, Inc. and Informatica Inc.:
Cloudflare, Inc. Grades
The table below summarizes recent grades assigned to Cloudflare by reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-01-16 |
| UBS | Maintain | Neutral | 2026-01-13 |
| Piper Sandler | Maintain | Neutral | 2026-01-05 |
| Argus Research | Maintain | Buy | 2025-11-10 |
| Susquehanna | Maintain | Neutral | 2025-11-03 |
| Citigroup | Maintain | Buy | 2025-11-03 |
| Cantor Fitzgerald | Maintain | Neutral | 2025-10-31 |
| Stifel | Maintain | Buy | 2025-10-31 |
| UBS | Maintain | Neutral | 2025-10-31 |
| Keybanc | Maintain | Overweight | 2025-10-31 |
Cloudflare’s grades show a solid Buy and Neutral mix, reflecting a generally positive but cautious outlook.
Informatica Inc. Grades
The table below presents recent grades assigned to Informatica by recognized grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Guggenheim | Downgrade | Neutral | 2025-08-07 |
| UBS | Maintain | Neutral | 2025-08-07 |
| Baird | Maintain | Neutral | 2025-05-28 |
| JP Morgan | Downgrade | Neutral | 2025-05-28 |
| RBC Capital | Maintain | Sector Perform | 2025-05-28 |
| Wolfe Research | Downgrade | Peer Perform | 2025-05-28 |
| Wells Fargo | Maintain | Equal Weight | 2025-05-28 |
| Truist Securities | Downgrade | Hold | 2025-05-28 |
| RBC Capital | Maintain | Sector Perform | 2025-05-27 |
| UBS | Maintain | Neutral | 2025-05-16 |
Informatica’s grades predominantly reflect Neutral or Hold positions, with several downgrades indicating growing caution.
Which company has the best grades?
Cloudflare, Inc. received generally more favorable grades including multiple Buy ratings and an Overweight, while Informatica Inc. mostly holds Neutral or Hold grades with downgrades. This suggests Cloudflare currently enjoys stronger analyst confidence, potentially influencing investor sentiment towards a more optimistic outlook.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Cloudflare, Inc. (NET) and Informatica Inc. (INFA) based on the most recent available data.
| Criterion | Cloudflare, Inc. (NET) | Informatica Inc. (INFA) |
|---|---|---|
| Diversification | Moderate: primarily cloud services with 1.67B USD revenue segment | Moderate: mix of subscription (1.1B USD) and professional services (78M USD) |
| Profitability | Weak: negative net margin (-4.72%), negative ROE (-7.53%), ROIC below WACC | Data not available |
| Innovation | Growing ROIC trend suggests improving profitability potential | Data not available |
| Global presence | Strong: global cloud infrastructure | Likely strong, but data unavailable |
| Market Share | Significant in cloud security and CDN markets | Data not available |
Key takeaways: Cloudflare shows growing innovation and a solid global presence but struggles with profitability and value creation as ROIC remains below WACC. Informatica’s recent financial data is unavailable, limiting evaluation, though its product mix suggests a subscription-driven model. Investors should weigh Cloudflare’s growth potential against its current financial challenges carefully.
Risk Analysis
Below is a comparative risk assessment for Cloudflare, Inc. (NET) and Informatica Inc. (INFA) based on the most recent data from 2024 and market context in 2026.
| Metric | Cloudflare, Inc. (NET) | Informatica Inc. (INFA) |
|---|---|---|
| Market Risk | High beta 1.97 indicates high volatility. | Moderate beta 1.14, lower volatility. |
| Debt level | Debt-to-equity ratio 1.4, considered unfavorable; interest coverage negative, indicating financial strain. | Data unavailable, but Altman Z-score in grey zone suggests moderate financial risk. |
| Regulatory Risk | Moderate, given global cloud security and data privacy regulations. | Moderate, with AI/data governance regulations impacting operations. |
| Operational Risk | High due to complex cloud infrastructure and cybersecurity threats. | Moderate, platform complexity and integration challenges. |
| Environmental Risk | Low to moderate, limited direct environmental impact. | Low, primarily software business with minimal environmental footprint. |
| Geopolitical Risk | Moderate, exposure to international markets and data sovereignty laws. | Moderate, with multinational customers and compliance requirements. |
Cloudflare faces the most impactful risks from high market volatility and financial leverage combined with operational challenges in cloud security. Informatica’s moderate financial risk and regulatory landscape require caution, but its lower volatility and average financial health reduce immediate risk concerns.
Which Stock to Choose?
Cloudflare, Inc. (NET) shows a strong income growth with revenue increasing by 287% over five years and improving net margin, despite a negative return on equity of -7.5%. Its financial ratios reveal mostly unfavorable profitability and leverage metrics, with a D+ rating indicating financial challenges but a favorable current liquidity position.
Informatica Inc. (INFA) demonstrates a favorable income statement with a positive EBIT margin of 12.15% and modest net margin of 0.61%. However, its revenue growth is slower at 24% over five years. Key financial ratios and ratings are unavailable, but its Altman Z-Score places it in a moderate risk “grey zone,” with average Piotroski strength.
Investors focused on growth may find Cloudflare’s rapid income expansion and improving profitability attractive, although its financial ratios and rating suggest caution regarding leverage and returns. Conversely, investors prioritizing more stable profitability and moderate risk might view Informatica’s earnings stability and credit metrics as more suitable, despite slower growth and limited ratio data.
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 Informatica Inc. to enhance your investment decisions:
