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APP vs. ZS: A Head-to-Head Stock Comparison

Updated

Here’s a clear look at APP and ZS, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

APP dominates in value with a market cap of 121.26 billion USD, eclipsing ZS’s 38.48 billion USD by roughly 3.15×.

APP’s beta of 2.39 points to much larger expected swings compared to ZS’s calmer 1.14, suggesting both higher upside and downside potential.

SymbolAPPZS
Company NameAppLovin CorporationZscaler, Inc.
CountryUSUS
SectorTechnologyTechnology
IndustrySoftware - ApplicationSoftware - Infrastructure
CEOMr. Adam Arash ForoughiMr. Jagtar Singh Chaudhry
Price358.35 USD248.72 USD
Market Cap121.26 billion USD38.48 billion USD
Beta2.391.14
ExchangeNASDAQNASDAQ
IPO DateApril 15, 2021March 16, 2018
ADRNoNo

Performance Comparison

This chart compares the performance of APP and ZS over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of APP and ZS based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • ZS shows a negative P/E of -2461.29, highlighting a year of losses, whereas APP at 63.43 trades on solid profitability.
  • ZS shows a negative forward PEG of -183.93, signaling expected earnings contraction, while APP at 2.43 maintains analysts’ projections for stable or improved profits.
SymbolAPPZS
Price-to-Earnings Ratio (P/E, TTM)63.43-2461.29
Forward PEG Ratio (TTM)2.43-183.93
Price-to-Sales Ratio (P/S, TTM)23.6115.89
Price-to-Book Ratio (P/B, TTM)211.6423.78
Price-to-Free Cash Flow Ratio (P/FCF, TTM)47.8752.41
EV-to-EBITDA (TTM)47.30357.47
EV-to-Sales (TTM)24.2315.67
EV-to-Free Cash Flow (TTM)49.1251.71

Dividend Comparison

Neither APP nor ZS currently pays a dividend yield; this often indicates they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.

SymbolAPPZS
Dividend Yield (TTM)0.00%0.00%

Financial Strength Metrics Comparison

This section dives into the financial resilience of APP and ZS, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • APP is heavily leveraged (debt-to-equity ratio 6.45), which can boost returns but raises risk if borrowing costs climb, while ZS at 0.77 keeps leverage at a more moderate level.
  • APP meets its interest obligations (ratio 7.41). In stark contrast, ZS’s negative ratio (-8.67) means its operating earnings (EBIT) don't cover basic operations, let alone interest, signaling serious financial trouble.
SymbolAPPZS
Current Ratio (TTM)1.681.20
Quick Ratio (TTM)1.681.20
Debt-to-Equity Ratio (TTM)6.450.77
Debt-to-Assets Ratio (TTM)0.650.25
Interest Coverage Ratio (TTM)7.41-8.67