APP vs. ZM: AppLovin vs. Zoom Communications Stock Comparison
How do AppLovin (APP) and Zoom Communications (ZM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
AppLovin (APP) and Zoom Communications (ZM) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | APP | ZM |
|---|---|---|
| Name | AppLovin Corporation Class A Common Stock | Zoom Communications, Inc. Class A Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | Software | Software |
| GICS Sub-Industry | Application Software | Application Software |
| Market Capitalization | 129.62 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | April 15, 2021 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | APP | ZM |
|---|---|---|
| Total Return (1Y) | -34.71% | 12.58% |
| Total Return (3Y, Annualized) | 116.87% | 14.89% |
| Total Return (5Y, Annualized) | 31.34% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
AppLovin (APP) carries a highly aggressive beta of 2.25, indicating much higher sensitivity to broad-market moves, whereas Zoom Communications (ZM) is closer to market-like at 0.99 — a noticeable difference in market-sensitivity profile.
| Metric | APP | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 80.36% | 45.03% |
| Beta (5Y) | 2.25 | 0.99 |
| Max Drawdown (5Y) | -91.90% | -79.08% |
| Avg. Volume (3M) | 5.33M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | APP | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | -0.49 | 0.18 |
| Sortino Ratio (1Y) | -0.69 | 0.28 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but AppLovin (APP) at 210.09% is the standout with ROE above its industry range; Zoom Communications (ZM) at 32.14% also sits in the top quartile.
APP
Software & Services industry group
210.09%
- APP
- 210.09%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
ZM
Software & Services industry group
32.14%
- Max
- 53.85%
- ZM
- 32.14%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- Min
- -50.52%
Net Margin (TTM)
Both AppLovin (APP) at 65.89% and Zoom Communications (ZM) at 65.19% keep an unusually large share of revenue as bottom-line profit — each net margin clears its industry’s benchmark range.
APP
Software & Services industry group
65.89%
- APP
- 65.89%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
ZM
Software & Services industry group
65.19%
- ZM
- 65.19%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- Min
- -33.17%
Operating Margin (TTM)
AppLovin (APP) at 78.22% shows unusually strong operating efficiency — above its industry’s operating margin range — and Zoom Communications (ZM) at 24.61% also operates in the top quartile.
APP
Software & Services industry group
78.22%
- APP
- 78.22%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
ZM
Software & Services industry group
24.61%
- Max
- 46.89%
- ZM
- 24.61%
- Q3
- 17.64%
- Median
- 8.73%
- Q1
- -2.13%
- Min
- -30.45%
Profitability Metrics
| Metric | APP | ZM |
|---|---|---|
| ROE (TTM) | 210.09% | 32.14% |
| ROA (TTM) | 49.57% | 6.11% |
| Net Margin (TTM) | 65.89% | 65.19% |
| Operating Margin (TTM) | 78.22% | 24.61% |
| Gross Margin (TTM) | 88.78% | 77.66% |
Growth
Revenue Growth
AppLovin (APP) at 69.99% delivers above-range revenue growth, while Zoom Communications (ZM) at 4.36% falls into the bottom quartile — a wide split in revenue momentum.
EPS Growth
Both AppLovin (APP) at 115.23% and Zoom Communications (ZM) at 92.52% sit in the top peer quartile for EPS growth, so each is compounding per-share earnings faster than typical industry peers.
Growth Metrics
| Metric | APP | ZM |
|---|---|---|
| Revenue Growth (YoY) | 69.99% | 4.36% |
| Revenue Growth (3Y CAGR) | 24.84% | 3.49% |
| EPS Growth (YoY) | 115.23% | 92.52% |
| EPS Growth (3Y CAGR) | -- | 162.93% |
Financial Strength
Current Ratio (MRQ)
Both AppLovin (APP) at 3.81 and Zoom Communications (ZM) at 3.83 post current ratio above their industries’ typical mid-ranges — short-term liquidity appears comfortable, though unusually high readings can point to idle current assets.
APP
Software & Services industry group
3.81
- Max
- 5.11
- APP
- 3.81
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
ZM
Software & Services industry group
3.83
- Max
- 5.11
- ZM
- 3.83
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- Min
- 0.03
Debt / Equity (MRQ)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while AppLovin (APP) at 1.07 runs a more typical debt-to-equity mix.
APP
Software & Services industry group
1.07
- Max
- 2.52
- Q3
- 1.13
- APP
- 1.07
- Median
- 0.40
- Q1
- 0.07
- Min
- 0.00
ZM
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- ZM
- 0.01
- Min
- 0.00
Financial Strength Metrics
| Metric | APP | ZM |
|---|---|---|
| Current Ratio (MRQ) | 3.81 | 3.83 |
| Debt / Equity (MRQ) | 1.07 | 0.01 |
| Net Debt / EBITDA | 0.06 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither AppLovin (APP) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
APP
Software & Services industry group
0.00%
- APP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Neither AppLovin (APP) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
APP
Software & Services industry group
0.00%
- APP
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ZM
Software & Services industry group
0.00%
- ZM
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | APP | ZM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while AppLovin (APP) at 26.34 is closer to its industry’s usual earnings multiple — a discount for ZM, though growth and earnings durability still matter.
APP
Software & Services industry group
26.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- APP
- 26.34
- Q1
- 18.77
- Min
- 6.69
ZM
Software & Services industry group
8.34
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- ZM
- 8.34
- Min
- 6.69
P/S Ratio (TTM)
Zoom Communications (ZM) at 5.25 is priced about in line with its industry on P/S ratio, while AppLovin (APP) at 17.04 sits in the pricier quartile — APP costs more per dollar of sales.
APP
Software & Services industry group
17.04
- Max
- 17.91
- APP
- 17.04
- Q3
- 8.78
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
ZM
Software & Services industry group
5.25
- Max
- 17.91
- Q3
- 8.78
- ZM
- 5.25
- Median
- 4.25
- Q1
- 2.23
- Min
- 0.02
P/B Ratio (MRQ)
Zoom Communications (ZM) at 2.32 sits near its industry’s typical P/B ratio, while AppLovin (APP) at 39.29 prices above its benchmark range — APP looks rich relative to book.
APP
Software & Services industry group
39.29
- APP
- 39.29
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- Q1
- 1.92
- Min
- -3.90
ZM
Software & Services industry group
2.32
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- ZM
- 2.32
- Q1
- 1.92
- Min
- -3.90
Valuation Metrics
| Metric | APP | ZM |
|---|---|---|
| P/E Ratio (TTM) | 26.34 | 8.34 |
| P/S Ratio (TTM) | 17.04 | 5.25 |
| P/B Ratio (MRQ) | 39.29 | 2.32 |
| Free Cash Flow Yield (TTM) | 2.87% | 7.53% |