OKTA vs. ZM: Okta vs. Zoom Communications Stock Comparison
How do Okta (OKTA) 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
Okta (OKTA) and Zoom Communications (ZM) both fall under the Software & Services industry group, but OKTA is classified in IT Services while ZM is classified in Software.
| Profile Item | OKTA | ZM |
|---|---|---|
| Name | Okta Inc. Class A Common Stock | Zoom Communications, Inc. Class A Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Software & Services | Software & Services |
| GICS Industry | IT Services | Software |
| GICS Sub-Industry | Internet Services & Infrastructure | Application Software |
| Market Capitalization | 29.49 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | April 7, 2017 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | OKTA | ZM |
|---|---|---|
| Total Return (1Y) | 108.64% | 12.58% |
| Total Return (3Y, Annualized) | 38.93% | 14.89% |
| Total Return (5Y, Annualized) | -7.90% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | OKTA | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 70.25% | 45.03% |
| Beta (5Y) | 0.76 | 0.99 |
| Max Drawdown (5Y) | -83.22% | -79.08% |
| Avg. Volume (3M) | 4.23M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | OKTA | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | 1.49 | 0.18 |
| Sortino Ratio (1Y) | 2.65 | 0.28 |
Profitability
ROE (TTM)
Zoom Communications (ZM) at 32.14% sits in the top ROE quartile, while Okta (OKTA) at 4.31% is closer to the peer norm — stronger capital efficiency for ZM.
OKTA
Software & Services industry group
4.31%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- OKTA
- 4.31%
- 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%
Net Margin (TTM)
Zoom Communications (ZM) at 65.19% converts revenue to bottom-line profit above its industry’s benchmark range, while Okta (OKTA) at 9.63% keeps roughly the typical share for its industry.
OKTA
Software & Services industry group
9.63%
- Max
- 41.17%
- Q3
- 15.28%
- OKTA
- 9.63%
- 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%
Operating Margin (TTM)
Zoom Communications (ZM) at 24.61% operates in the top operating margin quartile, ahead of Okta (OKTA) at 13.29%, which runs around its industry’s norm.
OKTA
Software & Services industry group
13.29%
- Max
- 46.89%
- Q3
- 17.64%
- OKTA
- 13.29%
- 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%
Profitability Metrics
| Metric | OKTA | ZM |
|---|---|---|
| ROE (TTM) | 4.31% | 32.14% |
| ROA (TTM) | 1.58% | 6.11% |
| Net Margin (TTM) | 9.63% | 65.19% |
| Operating Margin (TTM) | 13.29% | 24.61% |
| Gross Margin (TTM) | 78.13% | 77.66% |
Growth
Revenue Growth
Okta (OKTA) at 11.84% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Both companies show strong earnings momentum, but Okta (OKTA) at 2,083.33% is the standout with EPS growth above its industry range; Zoom Communications (ZM) at 92.52% also sits in the top quartile.
Growth Metrics
| Metric | OKTA | ZM |
|---|---|---|
| Revenue Growth (YoY) | 11.84% | 4.36% |
| Revenue Growth (3Y CAGR) | 16.25% | 3.49% |
| EPS Growth (YoY) | 2,083.33% | 92.52% |
| EPS Growth (3Y CAGR) | -- | 162.93% |
Financial Strength
Current Ratio (MRQ)
Okta (OKTA) at 1.53 keeps current ratio within its industry’s typical mid-range, while Zoom Communications (ZM) at 3.83 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
OKTA
Software & Services industry group
1.53
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- OKTA
- 1.53
- Q1
- 1.01
- 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
Debt / Equity (MRQ)
Both Okta (OKTA) at 0.01 and Zoom Communications (ZM) at 0.01 keep leverage in the lower quartile of their industries, with less balance-sheet debt relative to equity than most peers.
OKTA
Software & Services industry group
0.01
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- Q1
- 0.07
- OKTA
- 0.01
- 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
Financial Strength Metrics
| Metric | OKTA | ZM |
|---|---|---|
| Current Ratio (MRQ) | 1.53 | 3.83 |
| Debt / Equity (MRQ) | 0.01 | 0.01 |
| Net Debt / EBITDA | -7.00 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Okta (OKTA) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
OKTA
Software & Services industry group
0.00%
- OKTA
- 0.00%
- 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%
Dividend Payout Ratio (TTM)
Neither Okta (OKTA) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
OKTA
Software & Services industry group
0.00%
- OKTA
- 0.00%
- 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%
Dividend Metrics
| Metric | OKTA | ZM |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Zoom Communications (ZM) at 8.34 sits in the cheaper P/E ratio quartile, while Okta (OKTA) at 101.62 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.
OKTA
Software & Services industry group
101.62
- Max
- 112.94
- OKTA
- 101.62
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- 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
P/S Ratio (TTM)
Zoom Communications (ZM) at 5.25 is priced about in line with its industry on P/S ratio, while Okta (OKTA) at 9.60 sits in the pricier quartile — OKTA costs more per dollar of sales.
OKTA
Software & Services industry group
9.60
- Max
- 17.91
- OKTA
- 9.60
- Q3
- 8.78
- Median
- 4.25
- 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
P/B Ratio (MRQ)
On P/B ratio, both Okta (OKTA) at 4.23 and Zoom Communications (ZM) at 2.32 are valued close to their industries’ norm against book — neither stands out from peers.
OKTA
Software & Services industry group
4.23
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- OKTA
- 4.23
- 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
Valuation Metrics
| Metric | OKTA | ZM |
|---|---|---|
| P/E Ratio (TTM) | 101.62 | 8.34 |
| P/S Ratio (TTM) | 9.60 | 5.25 |
| P/B Ratio (MRQ) | 4.23 | 2.32 |
| Free Cash Flow Yield (TTM) | 3.52% | 7.53% |