Reviewing Zscaler (ZS) & Its Competitors

Zscaler (NASDAQ: ZS) is one of 38 public companies in the “Custom computer programming services” industry, but how does it weigh in compared to its competitors? We will compare Zscaler to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.

Analyst Recommendations

This is a summary of current recommendations for Zscaler and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zscaler 0 8 2 1 2.36
Zscaler Competitors 221 927 1589 70 2.54

Zscaler presently has a consensus target price of $35.86, indicating a potential downside of 15.89%. As a group, “Custom computer programming services” companies have a potential downside of 1.20%. Given Zscaler’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Zscaler has less favorable growth aspects than its competitors.

Profitability

This table compares Zscaler and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zscaler N/A N/A N/A
Zscaler Competitors 1.12% 97.69% 4.69%

Insider & Institutional Ownership

23.1% of Zscaler shares are owned by institutional investors. Comparatively, 59.4% of shares of all “Custom computer programming services” companies are owned by institutional investors. 11.7% of shares of all “Custom computer programming services” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Zscaler and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zscaler $190.17 million -$33.65 million -137.55
Zscaler Competitors $2.00 billion $177.09 million -3.61

Zscaler’s competitors have higher revenue and earnings than Zscaler. Zscaler is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Zscaler competitors beat Zscaler on 11 of the 12 factors compared.

About Zscaler

Zscaler, Inc. operates as a cloud security company worldwide. The company develops a software-as-a-service based security platform that secures access for users and devices to applications and services. It serves airline and transportation, conglomerate, consumer good and retail, financial service, healthcare, manufacturing, media and communication, public sector and education, technology, and telecommunications service industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

Receive News & Ratings for Zscaler Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zscaler and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply