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

Updated on October 4, 2025

Here’s a clear look at MSFT and ZS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	MSFT	ZS
Company Name	Microsoft Corporation	Zscaler, Inc.
Country	United States	United States
GICS Sector	Information Technology	Information Technology
GICS Industry	Software	Software
Market Capitalization	3,863.09 billion USD	48.21 billion USD
Exchange	NasdaqGS	NasdaqGS
Listing Date	March 13, 1986	March 16, 2018
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of MSFT and ZS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

MSFT vs. ZS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	MSFT	ZS
5-Day Price Return	2.50%	5.36%
13-Week Price Return	5.62%	-4.55%
26-Week Price Return	33.06%	41.65%
52-Week Price Return	20.78%	74.45%
Month-to-Date Return	0.34%	8.16%
Year-to-Date Return	23.30%	66.10%
10-Day Avg. Volume	21.67M	1.43M
3-Month Avg. Volume	20.04M	2.06M
3-Month Volatility	16.30%	28.49%
Beta	1.07	1.06

Profitability

Return on Equity (TTM)

MSFT

32.44%

Software Industry

Max: 66.28%
Q3: 21.28%
Median: 9.33%
Q1: -8.77%
Min: -48.16%

In the upper quartile for the Software industry, MSFT’s Return on Equity of 32.44% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ZS

-2.50%

Software Industry

Max: 66.28%
Q3: 21.28%
Median: 9.33%
Q1: -8.77%
Min: -48.16%

ZS has a negative Return on Equity of -2.50%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

MSFT vs. ZS: A comparison of their Return on Equity (TTM) against the Software industry benchmark.

Net Profit Margin (TTM)

MSFT

36.15%

Software Industry

Max: 51.92%
Q3: 19.23%
Median: 6.98%
Q1: -7.14%
Min: -41.00%

A Net Profit Margin of 36.15% places MSFT in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

ZS

-1.55%

Software Industry

Max: 51.92%
Q3: 19.23%
Median: 6.98%
Q1: -7.14%
Min: -41.00%

ZS has a negative Net Profit Margin of -1.55%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

MSFT vs. ZS: A comparison of their Net Profit Margin (TTM) against the Software industry benchmark.

Operating Profit Margin (TTM)

MSFT

45.29%

Software Industry

Max: 60.40%
Q3: 21.25%
Median: 9.90%
Q1: -4.97%
Min: -43.50%

An Operating Profit Margin of 45.29% places MSFT in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ZS

-4.81%

Software Industry

Max: 60.40%
Q3: 21.25%
Median: 9.90%
Q1: -4.97%
Min: -43.50%

ZS has a negative Operating Profit Margin of -4.81%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

MSFT vs. ZS: A comparison of their Operating Profit Margin (TTM) against the Software industry benchmark.

Profitability at a Glance

Symbol	MSFT	ZS
Return on Equity (TTM)	32.44%	-2.50%
Return on Assets (TTM)	18.20%	-0.77%
Net Profit Margin (TTM)	36.15%	-1.55%
Operating Profit Margin (TTM)	45.29%	-4.81%
Gross Profit Margin (TTM)	68.82%	76.87%

Financial Strength

Current Ratio (MRQ)

MSFT

1.35

Software Industry

Max: 4.29
Q3: 2.37
Median: 1.40
Q1: 1.03
Min: 0.25

MSFT’s Current Ratio of 1.35 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

ZS

2.01

Software Industry

Max: 4.29
Q3: 2.37
Median: 1.40
Q1: 1.03
Min: 0.25

ZS’s Current Ratio of 2.01 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

MSFT vs. ZS: A comparison of their Current Ratio (MRQ) against the Software industry benchmark.

Debt-to-Equity Ratio (MRQ)

MSFT

0.26

Software Industry

Max: 2.16
Q3: 0.86
Median: 0.31
Q1: 0.00
Min: 0.00

MSFT’s Debt-to-Equity Ratio of 0.26 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ZS

0.95

Software Industry

Max: 2.16
Q3: 0.86
Median: 0.31
Q1: 0.00
Min: 0.00

ZS’s leverage is in the upper quartile of the Software industry, with a Debt-to-Equity Ratio of 0.95. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

MSFT vs. ZS: A comparison of their Debt-to-Equity Ratio (MRQ) against the Software industry benchmark.

Interest Coverage Ratio (TTM)

MSFT

891.80

Software Industry

Max: 89.65
Q3: 32.64
Median: 1.00
Q1: -9.84
Min: -71.23

With an Interest Coverage Ratio of 891.80, MSFT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.

ZS

-6.38

Software Industry

Max: 89.65
Q3: 32.64
Median: 1.00
Q1: -9.84
Min: -71.23

ZS has a negative Interest Coverage Ratio of -6.38. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

MSFT vs. ZS: A comparison of their Interest Coverage Ratio (TTM) against the Software industry benchmark.

Financial Strength at a Glance

Symbol	MSFT	ZS
Current Ratio (MRQ)	1.35	2.01
Quick Ratio (MRQ)	1.35	1.96
Debt-to-Equity Ratio (MRQ)	0.26	0.95
Interest Coverage Ratio (TTM)	891.80	-6.38

Growth

Revenue Growth

MSFT vs. ZS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

MSFT vs. ZS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

MSFT

0.63%

Software Industry

Max: 0.22%
Q3: 0.11%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

MSFT’s Dividend Yield of 0.63% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

ZS

0.00%

Software Industry

Max: 0.22%
Q3: 0.11%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ZS currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

MSFT vs. ZS: A comparison of their Dividend Yield (TTM) against the Software industry benchmark.

Dividend Payout Ratio (TTM)

MSFT

23.65%

Software Industry

Max: 3.29%
Q3: 2.41%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

At 23.65%, MSFT’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

ZS

0.00%

Software Industry

Max: 3.29%
Q3: 2.41%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

ZS has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

MSFT vs. ZS: A comparison of their Dividend Payout Ratio (TTM) against the Software industry benchmark.

Dividend at a Glance

Symbol	MSFT	ZS
Dividend Yield (TTM)	0.63%	0.00%
Dividend Payout Ratio (TTM)	23.65%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

MSFT

37.47

Software Industry

Max: 145.74
Q3: 94.88
Median: 45.35
Q1: 26.66
Min: 8.80

MSFT’s P/E Ratio of 37.47 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ZS

Software Industry

Max: 145.74
Q3: 94.88
Median: 45.35
Q1: 26.66
Min: 8.80

P/E Ratio data for ZS is currently unavailable.

MSFT vs. ZS: A comparison of their Price-to-Earnings Ratio (TTM) against the Software industry benchmark.

Price-to-Sales Ratio (TTM)

MSFT

13.54

Software Industry

Max: 25.67
Q3: 13.68
Median: 8.28
Q1: 4.95
Min: 0.90

MSFT’s P/S Ratio of 13.54 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ZS

16.92

Software Industry

Max: 25.67
Q3: 13.68
Median: 8.28
Q1: 4.95
Min: 0.90

ZS’s P/S Ratio of 16.92 is in the upper echelon for the Software industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

MSFT vs. ZS: A comparison of their Price-to-Sales Ratio (TTM) against the Software industry benchmark.

Price-to-Book Ratio (MRQ)

MSFT

10.76

Software Industry

Max: 30.67
Q3: 14.92
Median: 8.52
Q1: 3.89
Min: 0.38

MSFT’s P/B Ratio of 10.76 is within the conventional range for the Software industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ZS

24.71

Software Industry

Max: 30.67
Q3: 14.92
Median: 8.52
Q1: 3.89
Min: 0.38

ZS’s P/B Ratio of 24.71 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

MSFT vs. ZS: A comparison of their Price-to-Book Ratio (MRQ) against the Software industry benchmark.

Valuation at a Glance

Symbol	MSFT	ZS
Price-to-Earnings Ratio (TTM)	37.47	--
Price-to-Sales Ratio (TTM)	13.54	16.92
Price-to-Book Ratio (MRQ)	10.76	24.71
Price-to-Free Cash Flow Ratio (TTM)	53.28	62.23