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GEN vs. ZM: Gen Digital vs. Zoom Communications Stock Comparison

How do Gen Digital (GEN) 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

Gen Digital (GEN) and Zoom Communications (ZM) both belong to the Software industry, though GEN is classified under Systems Software while ZM falls under Application Software.

Company profile comparison for Gen Digital (GEN) and Zoom Communications (ZM)
Profile ItemGENZM
NameGen Digital Inc.Zoom Communications, Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareApplication Software
Market Capitalization17.67 billion USD26.23 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJune 23, 1989April 18, 2019
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

GEN
ZM
GSPC
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Gen Digital (GEN) vs. Zoom Communications (ZM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Gen Digital (GEN) and Zoom Communications (ZM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Gen Digital (GEN) and Zoom Communications (ZM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Gen Digital (GEN) and Zoom Communications (ZM)
MetricGENZM
Total Return (1Y)18.20%12.58%
Total Return (3Y, Annualized)18.57%14.89%
Total Return (5Y, Annualized)5.70%-18.67%

Risk Profile

Drawdown History

GEN
ZM
GSPC
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Gen Digital (GEN) vs. Zoom Communications (ZM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Gen Digital (GEN) and Zoom Communications (ZM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Gen Digital (GEN) and Zoom Communications (ZM)
MetricGENZM
Volatility (1Y, Annualized)43.30%45.03%
Beta (5Y)1.230.99
Max Drawdown (5Y)-48.41%-79.08%
Avg. Volume (3M)8.39M2.88M

Risk-Adjusted Performance

Risk-Return Positioning

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GEN and ZM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Gen Digital (GEN) and Zoom Communications (ZM)
MetricGENZM
Sharpe Ratio (1Y)0.320.18
Sortino Ratio (1Y)0.500.28

Profitability

ROE (TTM)

Both Gen Digital (GEN) at 46.40% and Zoom Communications (ZM) at 32.14% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

GEN

Software & Services industry group

46.40%

Max
53.85%
GEN
46.40%
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%
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Zoom Communications (ZM) at 65.19% keeps the most of each sales dollar — above its industry’s net margin range — and Gen Digital (GEN) at 23.07% also retains a top-quartile share.

GEN

Software & Services industry group

23.07%

Max
41.17%
GEN
23.07%
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%
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Gen Digital (GEN) at 37.40% and Zoom Communications (ZM) at 24.61% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

GEN

Software & Services industry group

37.40%

Max
46.89%
GEN
37.40%
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%
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Gen Digital (GEN) and Zoom Communications (ZM)
MetricGENZM
ROE (TTM)46.40%32.14%
ROA (TTM)8.94%6.11%
Net Margin (TTM)23.07%65.19%
Operating Margin (TTM)37.40%24.61%
Gross Margin (TTM)77.41%77.66%

Growth

Revenue Growth

Gen Digital (GEN) at 27.06% sits in the top revenue growth quartile, while Zoom Communications (ZM) at 4.36% is in the bottom quartile, showing a clear gap in revenue momentum.

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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Gen Digital (GEN) at 52.43% 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.

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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Gen Digital (GEN) and Zoom Communications (ZM)
MetricGENZM
Revenue Growth (YoY)27.06%4.36%
Revenue Growth (3Y CAGR)14.66%3.49%
EPS Growth (YoY)52.43%92.52%
EPS Growth (3Y CAGR)-10.09%162.93%

Financial Strength

Current Ratio (MRQ)

Zoom Communications (ZM) at 3.83 carries current ratio above its industry’s typical mid-range, while Gen Digital (GEN) at 0.37 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

GEN

Software & Services industry group

0.37

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
GEN
0.37
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
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Zoom Communications (ZM) at 0.01 keeps leverage in the lower quartile, while Gen Digital (GEN) at 2.96 is above its industry debt-to-equity ratio range.

GEN

Software & Services industry group

2.96

GEN
2.96
Max
2.52
Q3
1.13
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
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Gen Digital (GEN) and Zoom Communications (ZM)
MetricGENZM
Current Ratio (MRQ)0.373.83
Debt / Equity (MRQ)2.960.01
Net Debt / EBITDA3.02-5.39

Dividends

Dividend Yield (TTM)

Zoom Communications (ZM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Gen Digital (GEN) reports a yield of 1.63%, ranking against industry peers normally.

GEN

Software & Services industry group

1.63%

GEN
1.63%
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%
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Zoom Communications (ZM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Gen Digital (GEN) reports a payout of 25.38%, ranking against industry peers normally.

GEN

Software & Services industry group

25.38%

GEN
25.38%
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%
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Gen Digital (GEN) and Zoom Communications (ZM)
MetricGENZM
Dividend Yield (TTM)1.63%0.00%
Dividend Payout Ratio (TTM)25.38%0.00%

Valuation

P/E Ratio (TTM)

Both Gen Digital (GEN) at 15.12 and Zoom Communications (ZM) at 8.34 sit in the cheaper earnings-multiple quartile for P/E ratio, with the market paying less for a dollar of trailing earnings than it pays for typical peers.

GEN

Software & Services industry group

15.12

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
GEN
15.12
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
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Gen Digital (GEN) at 3.38 and Zoom Communications (ZM) at 5.25 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

GEN

Software & Services industry group

3.38

Max
17.91
Q3
8.78
Median
4.25
GEN
3.38
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
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Gen Digital (GEN) at 6.45 and Zoom Communications (ZM) at 2.32 are valued close to their industries’ norm against book — neither stands out from peers.

GEN

Software & Services industry group

6.45

Max
16.63
Q3
8.50
GEN
6.45
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
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Gen Digital (GEN) vs. Zoom Communications (ZM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Gen Digital (GEN) and Zoom Communications (ZM)
MetricGENZM
P/E Ratio (TTM)15.128.34
P/S Ratio (TTM)3.385.25
P/B Ratio (MRQ)6.452.32
Free Cash Flow Yield (TTM)10.25%7.53%