Most investors have heard of Cloudflare (NET) due to its use by many well-known websites, yet many are unaware of Radware (RDWR). Both cloud stocks are worthy of your attention due to their long-term potential.

Cloud stocks are particularly intriguing now that employers, schools, and other organizations have pivoted toward the cloud which was accelerated by the pandemic. Both RDWR and NET may soar in the months and years ahead. There is also the potential for both of these cloud stocks to reverse course as the pandemic winds down as some investors might take money off the table assuming the cloud craze won’t maintain its momentum.

Is RDWR or NET the better buy moving forward? Let’s find out.

RDWR

RDWR makes products that facilitate the management and flow of web traffic, ensuring ongoing access to websites, applications, services, and content. RDWR’s web traffic management solutions are used by corporate enterprises, e-commerce businesses, service providers, and others. RDWR’s forward P/E ratio of 37.66 is a bit high yet the stock is approaching its 52-week high of $31.96 so the slightly elevated forward P/E ratio should not scare you away.

RDWR has a B POWR Ratings grade. The stock has an A grade in the Quality component along with B grades in the Growth and Stability components. Click here to learn more about how RDWR fares in the Value, Momentum, and Sentiment components. Of the 24 stocks in the Software – Security space, RDWR is ranked third. You can learn more about the stocks in the Software – Security sector by clicking here.

The only chink in RDWR’s armor seems to be its latest quarterly earnings disappointment. RDWR’s quarterly earnings came in at 21 cents per share though the analysts were expecting 23 cents per share. However, the company posted earnings of 18 cents per share in the same quarter one year ago, meaning the company is progressing in the right direction. RDWR revenues in the same quarter one year ago were slightly more than $67 million. This figure jumped to $69.05 million in the latest quarter.

NET

NET has quickly become synonymous with internet security. NET’s platform safeguards and speeds up websites and applications without the installation of software or hardware. NET has a D POWR Rating, meaning it is a Sell. Though NET has a B grade in the Momentum component of the POWR Ratings, the stock has Cs in the Quality, Sentiment, and Growth components. You can find out how NET grades out in the Value and Stability components of the POWR Ratings by clicking here.

NET is ranked 21st out of 24 stocks in the Software – Security category. Click here to learn more about the publicly traded companies in the Software – Security space.

The analysts are quite bullish on NET, setting an average target price of $98.79. If the stock were to pop to this level, it would have increased by nearly 40%. The high analyst target price for the stock is $105 while the low target price is $75. Of the 16 analysts who have issued recommendations for NET, eight consider it a Buy, five consider it a Strong Buy, and three consider it a Hold.

NET’s year-over-year revenue growth is a solid 50%. However, the company is posting a $34 million loss quarterly. The billion-dollar infusion of cash through short-term investments will certainly help. If everything goes as planned, NET will transition from the red to the black by the end of the ’21 fiscal year.

The Better Buy

NET is certainly appealing considering its growth rate yet savvy investors will lean toward RDWR. RDWR is ranked third of 24 stocks in its sector while NET can’t even crack the top 20. Above all, RDWR excels in the POWR Ratings with a B overall grade, ultimately making it the better buy of these two cloud stocks.