In the fast-evolving technology sector, Cloudflare, Inc. (NET) and UiPath Inc. (PATH) stand out as leaders in software infrastructure, each driving innovation in cloud security and robotic process automation, respectively. Both companies operate at the forefront of digital transformation, targeting overlapping enterprise markets with complementary solutions. This article will analyze their strengths and risks to help you decide which company presents the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Cloudflare and UiPath 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 security, performance, and reliability solutions worldwide. The company’s offerings include cloud firewall, DDoS protection, content delivery, intelligent routing, and developer tools. Cloudflare serves diverse industries such as technology, healthcare, financial services, and government, positioning itself as a key player in cloud infrastructure since its founding in 2009.
UiPath Overview
UiPath Inc. specializes in robotic process automation (RPA) software, providing an end-to-end platform that integrates AI and low-code environments for automating business processes. Its solutions enable organizations to build, manage, and govern automation workflows across various sectors including banking, healthcare, and government. Founded in 2005, UiPath emphasizes user-friendly automation tools and professional services to facilitate enterprise adoption.
Key similarities and differences
Both Cloudflare and UiPath operate within the software infrastructure industry, offering technology-driven platforms to enhance enterprise efficiency. Cloudflare focuses on cloud security and network performance, while UiPath centers on automation of business processes through AI and RPA. Each company serves a range of industries but differs in core product offerings, with Cloudflare delivering cloud-based security and performance solutions, and UiPath providing automation software and services.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Cloudflare, Inc. and UiPath Inc. for their most recent fiscal years.
| Metric | Cloudflare, Inc. (2024) | UiPath Inc. (2025) |
|---|---|---|
| Market Cap | 64.5B | 7.7B |
| Revenue | 1.67B | 1.43B |
| EBITDA | 62M | -145M |
| EBIT | -66M | -163M |
| Net Income | -79M | -74M |
| EPS | -0.23 | -0.13 |
| Fiscal Year | 2024 | 2025 |
Income Statement Interpretations
Cloudflare, Inc.
Cloudflare’s revenue grew significantly from 2020 to 2024, with a strong 28.76% increase in the latest year, reaching $1.67B. Net income improved by nearly 34% over the period but remained negative at -$78.8M in 2024. Gross margins stayed robust at 77.32%, while EBIT and net margins were negative but showed favorable growth, indicating improving profitability despite ongoing losses.
UiPath Inc.
UiPath’s revenue also expanded steadily, reaching $1.43B in 2025 with a 9.3% year-over-year increase. Net income losses narrowed to -$73.7M, improving by over 20% across the period. The company maintained strong gross margins at 82.73%, though EBIT and net margins remained negative. Margin growth was favorable, reflecting gradual operational improvements amid persistent unprofitability.
Which one has the stronger fundamentals?
Both companies show favorable growth in revenue and margin expansion, but Cloudflare demonstrates more substantial top-line growth and sharper improvements in EBIT and net margins. UiPath has higher gross margins but slightly smaller revenue growth and a neutral EBIT growth last year. Cloudflare’s stronger overall income statement trends suggest comparatively stronger fundamentals based on available data.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Cloudflare, Inc. (NET) and UiPath Inc. (PATH) based on their most recent fiscal year data.
| Ratios | Cloudflare, Inc. (NET) 2024 | UiPath Inc. (PATH) 2025 |
|---|---|---|
| ROE | -7.53% | -3.99% |
| ROIC | -6.06% | -7.41% |
| P/E | -466.5 | -108.0 |
| P/B | 35.14 | 4.31 |
| Current Ratio | 2.86 | 2.93 |
| Quick Ratio | 2.86 | 2.93 |
| D/E | 1.40 | 0.04 |
| Debt-to-Assets | 44.3% | 2.7% |
| Interest Coverage | -29.78 | 0.00 |
| Asset Turnover | 0.51 | 0.50 |
| Fixed Asset Turnover | 2.63 | 14.41 |
| Payout ratio | 0 | 0 |
| Dividend yield | 0 | 0 |
Interpretation of the Ratios
Cloudflare, Inc.
Cloudflare’s financial ratios reveal several weaknesses, including negative net margin (-4.72%), return on equity (-7.53%), and return on invested capital (-6.06%), indicating profitability and efficiency challenges. The company maintains a strong current and quick ratio (~2.86), but its high price-to-book ratio (35.14) and debt-to-equity (1.4) raise concerns. Cloudflare does not pay dividends, likely prioritizing reinvestment and growth.
UiPath Inc.
UiPath displays mixed financial ratios with negative net margin (-5.15%) and return on equity (-3.99%), reflecting ongoing profitability pressures. It shows strength in liquidity with current and quick ratios near 2.93, and a low debt-to-equity ratio (0.04) indicating conservative leverage. The high fixed asset turnover (14.41) contrasts with weaker asset turnover (0.5). UiPath also pays no dividends, focusing on reinvestment and expanding operations.
Which one has the best ratios?
UiPath presents a more balanced ratio profile with greater liquidity, lower leverage, and favorable fixed asset turnover, despite profitability setbacks. Cloudflare struggles with more unfavorable profitability and solvency metrics, compounded by a high valuation multiple. Overall, UiPath’s ratios appear somewhat stronger, though both companies face challenges in earnings and returns.
Strategic Positioning
This section compares the strategic positioning of Cloudflare, Inc. and UiPath Inc. in terms of Market position, Key segments, and Exposure to technological disruption:
Cloudflare, Inc.
- Large market cap of 64.5B, faces competitive pressure in cloud services and internet security.
- Focuses on cloud-based security, performance, and reliability solutions across diverse industries.
- Exposure to disruption through continuous innovation in cloud infrastructure and security products.
UiPath Inc.
- Smaller market cap of 7.7B, operates in competitive robotic process automation software market.
- Concentrates on end-to-end automation platform with licensing, subscription, and professional services.
- Exposure to disruption via AI-powered automation and low-code development environments for enterprise clients.
Cloudflare, Inc. vs UiPath Inc. Positioning
Cloudflare shows a diversified approach across cloud security and performance solutions, serving multiple industries. UiPath concentrates on automation software with segmented revenue streams, emphasizing AI integration. Both face evolving technology demands but differ in market breadth and product focus.
Which has the best competitive advantage?
Both companies are currently shedding value relative to their cost of capital but show growing profitability trends. Their slight unfavorable moat status suggests limited sustainable competitive advantage despite improving returns.
Stock Comparison
The stock price movements of Cloudflare, Inc. and UiPath Inc. over the past 12 months reveal contrasting trading dynamics, with Cloudflare exhibiting strong gains and UiPath facing sustained declines amid shifting buyer-seller balances.
Trend Analysis
Cloudflare, Inc. (NET) experienced a bullish trend over the past year with an 87.07% price increase, though the pace of growth has decelerated. The stock ranged from a low of 67.69 to a high of 253.3, showing notable volatility (std. dev. 52.73).
UiPath Inc. (PATH) showed a bearish trend over the same period, dropping 38.53% with accelerating decline momentum. Its price fluctuated between 10.04 and 23.66, and volatility remained low (std. dev. 3.33).
Comparing the two, Cloudflare delivered the highest market performance with a significant positive price change, while UiPath’s stock declined considerably, reflecting divergent investor sentiment and momentum.
Target Prices
The current analyst consensus presents a positive outlook with notable upside potential for both Cloudflare, Inc. and UiPath Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Cloudflare, Inc. | 300 | 210 | 248.86 |
| UiPath Inc. | 19 | 14 | 16.6 |
Analysts expect Cloudflare’s stock to appreciate from its current price of 184.17 USD toward an average target of 248.86 USD, while UiPath’s consensus target of 16.6 USD suggests modest upside from its current 14.34 USD.
Analyst Opinions Comparison
This section compares analysts’ ratings and financial scores for Cloudflare, Inc. and UiPath Inc.:
Rating Comparison
Cloudflare, Inc. Rating
- Rating: D+, considered very favorable overall.
- Discounted Cash Flow Score: 1, very unfavorable valuation.
- ROE Score: 1, very unfavorable efficiency in equity use.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 1, very unfavorable financial risk.
- Overall Score: 1, very unfavorable financial standing.
UiPath Inc. Rating
- Rating: B+, considered very favorable overall.
- Discounted Cash Flow Score: 3, moderate valuation.
- ROE Score: 4, favorable efficiency in equity use.
- ROA Score: 4, favorable asset utilization.
- Debt To Equity Score: 4, favorable financial risk profile.
- Overall Score: 3, moderate financial standing.
Which one is the best rated?
Based on the provided data, UiPath Inc. has a significantly higher rating and better financial scores overall compared to Cloudflare, Inc. UiPath’s scores indicate stronger profitability and financial stability.
Scores Comparison
Here is a comparison of the financial health scores for Cloudflare, Inc. and UiPath Inc.:
Cloudflare, Inc. Scores
- Altman Z-Score: 9.47, indicating a safe zone with very low bankruptcy risk.
- Piotroski Score: 2, classified as very weak financial strength.
UiPath Inc. Scores
- Altman Z-Score: 5.27, indicating a safe zone with low bankruptcy risk.
- Piotroski Score: 7, classified as strong financial strength.
Which company has the best scores?
UiPath shows a lower bankruptcy risk with a safe Altman Z-Score and a strong Piotroski Score, while Cloudflare has a higher Altman Z-Score but a very weak Piotroski Score.
Grades Comparison
The following is a comparison of recent reliable grades issued by recognized financial institutions for Cloudflare, Inc. and UiPath Inc.:
Cloudflare, Inc. Grades
This table summarizes recent grades assigned by leading financial firms to Cloudflare, Inc.:
| 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 consistent pattern of “Buy” and “Neutral” ratings, indicating a generally positive but cautious stance among analysts.
UiPath Inc. Grades
This table presents the recent grades awarded to UiPath Inc. by reputable financial analysts:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | Maintain | Equal Weight | 2026-01-12 |
| RBC Capital | Maintain | Sector Perform | 2026-01-05 |
| RBC Capital | Maintain | Sector Perform | 2025-12-10 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-09 |
| DA Davidson | Maintain | Neutral | 2025-12-05 |
| Canaccord Genuity | Maintain | Buy | 2025-12-04 |
| Mizuho | Maintain | Neutral | 2025-12-04 |
| RBC Capital | Maintain | Sector Perform | 2025-12-04 |
| Wells Fargo | Maintain | Equal Weight | 2025-12-04 |
| Evercore ISI Group | Maintain | In Line | 2025-12-04 |
UiPath’s ratings predominantly consist of “Equal Weight,” “Neutral,” and “Sector Perform,” with one “Buy,” reflecting a more cautious analyst consensus.
Which company has the best grades?
Cloudflare, Inc. has received stronger grades overall, with multiple “Buy” and an “Overweight” rating, suggesting a more favorable outlook compared to UiPath Inc.’s mainly neutral and sector performance ratings. This disparity may influence investors seeking higher conviction from analysts.
Strengths and Weaknesses
Below is a comparative overview of the strengths and weaknesses for Cloudflare, Inc. (NET) and UiPath Inc. (PATH), based on the latest available data.
| Criterion | Cloudflare, Inc. (NET) | UiPath Inc. (PATH) |
|---|---|---|
| Diversification | Moderate: Primarily focused on cloud security and performance services with $1.67B revenue (2024). | High: Diverse revenue streams including License ($587M), Subscription ($802M), and Professional Services ($71M) in 2025. |
| Profitability | Unfavorable: Negative net margin (-4.72%), ROIC (-6.06%), and ROE (-7.53%) with value destruction but improving ROIC trend. | Unfavorable: Negative net margin (-5.15%), ROIC (-7.41%), and ROE (-3.99%), though ROIC is improving strongly. |
| Innovation | Moderate: Growing ROIC suggests improving operational efficiency and innovation efforts. | Strong: High fixed asset turnover (14.41) indicates efficient asset use, supporting innovation and growth. |
| Global presence | Strong: Well-established global cloud infrastructure and services footprint. | Growing: Expanding automation software presence worldwide, supported by diverse subscription and licensing models. |
| Market Share | Significant player in cloud security and CDN markets but faces intense competition. | Rapidly growing in robotic process automation (RPA) niche, with increasing market penetration. |
Key takeaways: Both companies are currently value destroyers with negative profitability metrics but show improving ROIC trends, indicating potential operational improvements. UiPath’s diversified revenue and asset efficiency provide a competitive edge, while Cloudflare’s strong global presence supports future growth opportunities. Investors should monitor profitability trends closely before committing.
Risk Analysis
Below is a comparative risk overview for Cloudflare, Inc. (NET) and UiPath Inc. (PATH) based on the most recent data from 2025-2026.
| Metric | Cloudflare, Inc. (NET) | UiPath Inc. (PATH) |
|---|---|---|
| Market Risk | High beta of 1.97 indicates elevated market volatility sensitivity. | Moderate beta of 1.08 shows more stable market exposure. |
| Debt level | Debt-to-equity ratio of 1.4 signals higher leverage and financial risk. | Very low debt-to-equity ratio of 0.04 indicates strong balance sheet. |
| Regulatory Risk | Moderate, operates globally with exposure to data security regulations. | Moderate, with operations in multiple countries and compliance requirements. |
| Operational Risk | Unfavorable profitability ratios suggest operational challenges. | Slightly unfavorable margins but stronger operational efficiency metrics. |
| Environmental Risk | Low direct environmental risk due to software service nature. | Similarly low environmental risk inherent to software sector. |
| Geopolitical Risk | Moderate, with global customer base including government sectors. | Moderate, due to international presence and sectors served. |
Both companies face notable operational and market risks, with Cloudflare exhibiting higher financial leverage and market volatility exposure. UiPath’s stronger balance sheet and better operational scores reduce its financial risk, but both remain sensitive to regulatory changes and geopolitical factors in their international operations.
Which Stock to Choose?
Cloudflare, Inc. (NET) shows strong revenue growth of 287% over 2020-2024 with improving profitability metrics despite negative net margin and ROE. Its financial ratios reveal mostly unfavorable indicators, including high debt and weak interest coverage, while its rating is very unfavorable.
UiPath Inc. (PATH) has steadier income growth of 135% over 2021-2025, maintaining favorable gross margin but facing negative ROE and net margin. Its financial ratios are slightly unfavorable with stronger debt metrics and a moderate rating, reflecting better financial stability than NET.
Investors with a growth focus might find NET’s accelerating income growth and improving profitability appealing, despite its weaker financial ratios and rating. Conversely, those prioritizing financial stability and moderate risk may view PATH’s healthier debt profile and moderate rating as more favorable. Both companies show value destruction but improving profitability, suggesting cautious monitoring.
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 UiPath Inc. to enhance your investment decisions:
