Head to Head Contrast: Zscaler (ZS) and Its Rivals

Zscaler (NASDAQ: ZS) is one of 38 publicly-traded companies in the “Custom computer programming services” industry, but how does it contrast to its rivals? We will compare Zscaler to similar companies based on the strength of its dividends, valuation, earnings, profitability, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Zscaler and its rivals’ 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%

Valuation and Earnings

This table compares Zscaler and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zscaler $190.17 million -$33.64 million -133.65
Zscaler Competitors $2.00 billion $177.09 million -3.81

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

Analyst Recommendations

This is a summary of recent recommendations for Zscaler and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zscaler 0 8 2 1 2.36
Zscaler Competitors 223 935 1593 70 2.54

Zscaler currently has a consensus price target of $35.86, indicating a potential downside of 13.44%. As a group, “Custom computer programming services” companies have a potential upside of 0.67%. Given Zscaler’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Zscaler has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

23.0% of Zscaler shares are held by institutional investors. Comparatively, 59.0% of shares of all “Custom computer programming services” companies are held by institutional investors. 11.7% of shares of all “Custom computer programming services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

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

Zscaler Company Profile

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.

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