Analyzing Zscaler (ZS) & Its Competitors

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

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Zscaler $190.17 million -$33.65 million -129.87
Zscaler Competitors $2.00 billion $177.09 million -3.55

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.

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%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Zscaler and its competitors, as reported 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 currently has a consensus price target of $35.86, indicating a potential downside of 10.92%. As a group, “Custom computer programming services” companies have a potential upside of 0.26%. Given Zscaler’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Zscaler has less favorable growth aspects than its competitors.

Insider and 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 insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Zscaler competitors 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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