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MSFT vs. ZS: Microsoft vs. Zscaler Stock Comparison

How do Microsoft (MSFT) and Zscaler (ZS) 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

Microsoft (MSFT) and Zscaler (ZS) are both classified in the Systems Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.

Company profile comparison for Microsoft (MSFT) and Zscaler (ZS)
Profile ItemMSFTZS
NameMicrosoft Corporation Common StockZscaler Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustrySystems SoftwareSystems Software
Market Capitalization3,940.41 billion USD32.23 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateMarch 13, 1986March 16, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

MSFT
ZS
GSPC
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Microsoft (MSFT) vs. Zscaler (ZS), 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 Microsoft (MSFT) and Zscaler (ZS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Microsoft (MSFT) and Zscaler (ZS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Microsoft (MSFT) and Zscaler (ZS)
MetricMSFTZS
Total Return (1Y)10.30%-37.61%
Total Return (3Y, Annualized)15.53%5.36%
Total Return (5Y, Annualized)11.01%-10.75%

Risk Profile

Drawdown History

MSFT
ZS
GSPC
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Microsoft (MSFT) vs. Zscaler (ZS), 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 Microsoft (MSFT) and Zscaler (ZS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Microsoft (MSFT) and Zscaler (ZS)
MetricMSFTZS
Volatility (1Y, Annualized)33.91%68.66%
Beta (5Y)1.030.88
Max Drawdown (5Y)-37.15%-76.41%
Avg. Volume (3M)22.95M2.92M

Risk-Adjusted Performance

Risk-Return Positioning

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MSFT and ZS 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 Microsoft (MSFT) and Zscaler (ZS)
MetricMSFTZS
Sharpe Ratio (1Y)0.18-0.61
Sortino Ratio (1Y)0.28-0.79

Profitability

ROE (TTM)

Zscaler (ZS) reports a negative ROE of -2.87%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Microsoft (MSFT) reports 34.22%, ranking against industry peers normally.

MSFT

Software & Services industry group

34.22%

Max
53.85%
MSFT
34.22%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%

ZS

Software & Services industry group

-2.87%

Max
53.85%
Q3
17.90%
Median
6.59%
ZS
-2.87%
Q1
-9.59%
Min
-50.52%
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Zscaler (ZS) reports a negative net margin of -1.89%, usually indicating a net loss over the period. Meanwhile Microsoft (MSFT) reports 41.17%, ranking against industry peers normally.

MSFT

Software & Services industry group

41.17%

MSFT
41.17%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%

ZS

Software & Services industry group

-1.89%

Max
41.17%
Q3
15.28%
Median
4.63%
ZS
-1.89%
Q1
-5.42%
Min
-33.17%
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Zscaler (ZS) reports a negative operating margin of -1.01%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Microsoft (MSFT) reports 49.76%, ranking against industry peers normally.

MSFT

Software & Services industry group

49.76%

MSFT
49.76%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%

ZS

Software & Services industry group

-1.01%

Max
46.89%
Q3
17.64%
Median
8.73%
ZS
-1.01%
Q1
-2.13%
Min
-30.45%
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Microsoft (MSFT) and Zscaler (ZS)
MetricMSFTZS
ROE (TTM)34.22%-2.87%
ROA (TTM)14.41%-1.03%
Net Margin (TTM)41.17%-1.89%
Operating Margin (TTM)49.76%-1.01%
Gross Margin (TTM)67.66%76.87%

Growth

Revenue Growth

Both Microsoft (MSFT) at 17.79% and Zscaler (ZS) at 25.42% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Microsoft (MSFT) reports EPS growth of 31.60%, ranked against its industry; Zscaler (ZS) has no EPS growth figure this period.

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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Microsoft (MSFT) and Zscaler (ZS)
MetricMSFTZS
Revenue Growth (YoY)17.79%25.42%
Revenue Growth (3Y CAGR)16.12%27.51%
EPS Growth (YoY)31.60%--
EPS Growth (3Y CAGR)22.86%--

Financial Strength

Current Ratio (MRQ)

Both Microsoft (MSFT) at 1.23 and Zscaler (ZS) at 1.70 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

MSFT

Software & Services industry group

1.23

Max
5.11
Q3
2.77
Median
1.67
MSFT
1.23
Q1
1.01
Min
0.03

ZS

Software & Services industry group

1.70

Max
5.11
Q3
2.77
ZS
1.70
Median
1.67
Q1
1.01
Min
0.03
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Microsoft (MSFT) at 0.28 and Zscaler (ZS) at 0.72 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

MSFT

Software & Services industry group

0.28

Max
2.52
Q3
1.13
Median
0.40
MSFT
0.28
Q1
0.07
Min
0.00

ZS

Software & Services industry group

0.72

Max
2.52
Q3
1.13
ZS
0.72
Median
0.40
Q1
0.07
Min
0.00
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Microsoft (MSFT) and Zscaler (ZS)
MetricMSFTZS
Current Ratio (MRQ)1.231.70
Debt / Equity (MRQ)0.280.72
Net Debt / EBITDA0.34-36.63

Dividends

Dividend Yield (TTM)

Zscaler (ZS) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a yield of 0.69%, ranking against industry peers normally.

MSFT

Software & Services industry group

0.69%

MSFT
0.69%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ZS

Software & Services industry group

0.00%

ZS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Zscaler (ZS) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a payout of 19.00%, ranking against industry peers normally.

MSFT

Software & Services industry group

19.00%

MSFT
19.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

ZS

Software & Services industry group

0.00%

ZS
0.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Microsoft (MSFT) and Zscaler (ZS)
MetricMSFTZS
Dividend Yield (TTM)0.69%0.00%
Dividend Payout Ratio (TTM)19.00%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Microsoft (MSFT) trades at 27.69 times trailing earnings, ranked against its peers, while Zscaler (ZS) has no P/E ratio this period.

MSFT

Software & Services industry group

27.69

Max
112.94
Q3
60.32
Median
32.91
MSFT
27.69
Q1
18.77
Min
6.69

ZS

Software & Services industry group

--

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
Min
6.69
ZS
--
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Microsoft (MSFT) vs. Zscaler (ZS): ZS does not report P/E ratio, so it has no value marker; MSFT is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

Both Microsoft (MSFT) at 11.37 and Zscaler (ZS) at 9.61 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

MSFT

Software & Services industry group

11.37

Max
17.91
MSFT
11.37
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02

ZS

Software & Services industry group

9.61

Max
17.91
ZS
9.61
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Microsoft (MSFT) at 8.38 is valued about in line with its industry on P/B ratio, while Zscaler (ZS) at 12.40 carries an above-peer premium to book — ZS is pricier on assets.

MSFT

Software & Services industry group

8.38

Max
16.63
Q3
8.50
MSFT
8.38
Median
4.30
Q1
1.92
Min
-3.90

ZS

Software & Services industry group

12.40

Max
16.63
ZS
12.40
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
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Microsoft (MSFT) vs. Zscaler (ZS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Microsoft (MSFT) and Zscaler (ZS)
MetricMSFTZS
P/E Ratio (TTM)27.69--
P/S Ratio (TTM)11.379.61
P/B Ratio (MRQ)8.3812.40
Free Cash Flow Yield (TTM)0.08%3.34%