PANW vs. ZM: Palo Alto Networks vs. Zoom Communications Stock Comparison
How do Palo Alto Networks (PANW) 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
Palo Alto Networks (PANW) and Zoom Communications (ZM) both belong to the Software industry, though PANW is classified under Systems Software while ZM falls under Application Software.
| Profile Item | PANW | ZM |
|---|---|---|
| Name | Palo Alto Networks, Inc. | 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 | Software | Software |
| GICS Sub-Industry | Systems Software | Application Software |
| Market Capitalization | 256.86 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | July 20, 2012 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | PANW | ZM |
|---|---|---|
| Total Return (1Y) | 53.99% | 12.58% |
| Total Return (3Y, Annualized) | 39.16% | 14.89% |
| Total Return (5Y, Annualized) | 30.80% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | PANW | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 51.34% | 45.03% |
| Beta (5Y) | 1.00 | 0.99 |
| Max Drawdown (5Y) | -36.01% | -79.08% |
| Avg. Volume (3M) | 6.03M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | PANW | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | 0.97 | 0.18 |
| Sortino Ratio (1Y) | 1.49 | 0.28 |
Profitability
ROE (TTM)
Zoom Communications (ZM) at 32.14% sits in the top ROE quartile, while Palo Alto Networks (PANW) at 1.74% is closer to the peer norm — stronger capital efficiency for ZM.
PANW
Software & Services industry group
1.74%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- PANW
- 1.74%
- 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 Palo Alto Networks (PANW) at 2.67% keeps roughly the typical share for its industry.
PANW
Software & Services industry group
2.67%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- PANW
- 2.67%
- 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 Palo Alto Networks (PANW) at 5.40%, which runs around its industry’s norm.
PANW
Software & Services industry group
5.40%
- Max
- 46.89%
- Q3
- 17.64%
- Median
- 8.73%
- PANW
- 5.40%
- 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 | PANW | ZM |
|---|---|---|
| ROE (TTM) | 1.74% | 32.14% |
| ROA (TTM) | 1.40% | 6.11% |
| Net Margin (TTM) | 2.67% | 65.19% |
| Operating Margin (TTM) | 5.40% | 24.61% |
| Gross Margin (TTM) | 70.38% | 77.66% |
Growth
Revenue Growth
Palo Alto Networks (PANW) at 24.50% 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
Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Palo Alto Networks (PANW) at -75.00% is in the bottom quartile, showing a clear gap in earnings momentum.
Growth Metrics
| Metric | PANW | ZM |
|---|---|---|
| Revenue Growth (YoY) | 24.50% | 4.36% |
| Revenue Growth (3Y CAGR) | 18.54% | 3.49% |
| EPS Growth (YoY) | -75.00% | 92.52% |
| EPS Growth (3Y CAGR) | -14.50% | 162.93% |
Financial Strength
Current Ratio (MRQ)
Zoom Communications (ZM) at 3.83 carries current ratio above its industry’s typical mid-range, while Palo Alto Networks (PANW) at 0.87 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
PANW
Software & Services industry group
0.87
- Max
- 5.11
- Q3
- 2.77
- Median
- 1.67
- Q1
- 1.01
- PANW
- 0.87
- 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)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Palo Alto Networks (PANW) at 0.09 runs a more typical debt-to-equity mix.
PANW
Software & Services industry group
0.09
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- PANW
- 0.09
- 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
Financial Strength Metrics
| Metric | PANW | ZM |
|---|---|---|
| Current Ratio (MRQ) | 0.87 | 3.83 |
| Debt / Equity (MRQ) | 0.09 | 0.01 |
| Net Debt / EBITDA | -0.32 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Palo Alto Networks (PANW) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
PANW
Software & Services industry group
0.00%
- PANW
- 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 Palo Alto Networks (PANW) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
PANW
Software & Services industry group
0.00%
- PANW
- 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 | PANW | 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 Palo Alto Networks (PANW) at 784.60 trades above its peer range — a wide earnings-valuation gap relative to industry peers.
PANW
Software & Services industry group
784.60
- PANW
- 784.60
- Max
- 112.94
- 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 prices around its industry’s typical P/S ratio, while Palo Alto Networks (PANW) at 22.37 clears its benchmark range — PANW looks notably rich on sales.
PANW
Software & Services industry group
22.37
- PANW
- 22.37
- Max
- 17.91
- 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)
Zoom Communications (ZM) at 2.32 is valued about in line with its industry on P/B ratio, while Palo Alto Networks (PANW) at 9.30 carries an above-peer premium to book — PANW is pricier on assets.
PANW
Software & Services industry group
9.30
- Max
- 16.63
- PANW
- 9.30
- Q3
- 8.50
- 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
Valuation Metrics
| Metric | PANW | ZM |
|---|---|---|
| P/E Ratio (TTM) | 784.60 | 8.34 |
| P/S Ratio (TTM) | 22.37 | 5.25 |
| P/B Ratio (MRQ) | 9.30 | 2.32 |
| Free Cash Flow Yield (TTM) | 1.65% | 7.53% |