ARM vs. ZS: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at ARM and ZS, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
ARM’s market capitalization of 148.65 billion USD is substantially larger than ZS’s 46.34 billion USD, indicating a significant difference in their market valuations.
ZS carries a higher beta at 1.09, indicating it’s more sensitive to market moves, while ARM (beta: 0.27) exhibits greater stability.
ARM trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, ZS is a standard domestic listing.
| Symbol | ARM | ZS |
|---|---|---|
| Company Name | Arm Holdings plc American Depositary Shares | Zscaler, Inc. |
| Country | GB | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Software - Infrastructure |
| CEO | Mr. Rene Anthony Andrada Haas | Mr. Jagtar Singh Chaudhry |
| Price | 140.63 USD | 297.6 USD |
| Market Cap | 148.65 billion USD | 46.34 billion USD |
| Beta | 0.27 | 1.09 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | September 14, 2023 | March 16, 2018 |
| ADR | Yes | No |
Performance Comparison
This chart compares the performance of ARM and ZS over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- ARM: $8897.82 (-11.02%)
- ZS: $16399.89 (64.00%)
Valuation Metrics Comparison
This section compares the market valuation of ARM and ZS. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- ARM’s Price-to-Earnings (P/E) ratio of 186.15 is very high, indicating its stock trades at a significant premium to its earnings, possibly due to strong investor sentiment or high growth expectations. ZS’s P/E ratio of -1188.84 is negative, signaling it is currently unprofitable.
- ARM’s Forward PEG ratio of 6.98 is very high, suggesting its stock might be overvalued if its price has substantially outrun its future earnings growth forecast. ZS’s Forward PEG ratio of -58.54 is negative, often an indicator of issues such as negative current earnings or anticipated earnings contraction, which calls its fundamental valuation into question.
| Symbol | ARM | ZS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 186.15 | -1188.84 |
| Forward PEG Ratio (TTM) | 6.98 | -58.54 |
| Price-to-Sales Ratio (P/S, TTM) | 37.10 | 18.19 |
| Price-to-Book Ratio (P/B, TTM) | 21.56 | 25.54 |
| EV-to-EBITDA (TTM) | 264.72 | 455.97 |
| EV-to-Sales (TTM) | 36.67 | 17.89 |
Dividend Comparison
Neither ARM nor ZS currently pays a dividend; this often suggests they are reinvesting earnings for growth, prioritizing long-term expansion over immediate cash returns to shareholders.
| Symbol | ARM | ZS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
Financial Strength Metrics Comparison
Explore the financial strength details for ARM and ZS in the table below.
| Symbol | ARM | ZS |
|---|---|---|
| Current Ratio (TTM) | 5.20 | 1.24 |
| Quick Ratio (TTM) | 5.20 | 1.24 |
| Debt-to-Equity Ratio (TTM) | 0.05 | 0.68 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.23 |
| Net Debt-to-EBITDA Ratio (TTM) | -3.12 | -7.62 |
| Interest Coverage Ratio (TTM) | -- | -12.23 |