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

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

Company Profile

SymbolSNOWZS
Company NameSnowflake Inc.Zscaler, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesSoftware
Market Capitalization65.67 billion USD42.63 billion USD
ExchangeNYSENasdaqGS
Listing DateSeptember 16, 2020March 16, 2018
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of SNOW 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.

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

Historical Performance at a Glance

SymbolSNOWZS
5-Day Price Return-0.72%1.04%
13-Week Price Return9.88%8.41%
26-Week Price Return2.09%27.45%
52-Week Price Return45.72%40.05%
Month-to-Date Return-11.94%-4.12%
Year-to-Date Return27.46%51.77%
10-Day Avg. Volume3.66M1.36M
3-Month Avg. Volume4.32M2.22M
3-Month Volatility41.72%33.64%
Beta1.241.07

Profitability

Return on Equity (TTM)

SNOW

-44.88%

IT Services Industry

Max
29.51%
Q3
16.98%
Median
13.47%
Q1
7.93%
Min
-3.97%

SNOW has a negative Return on Equity of -44.88%. 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.

ZS

-2.54%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

ZS has a negative Return on Equity of -2.54%. 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.

SNOW vs. ZS: A comparison of their Return on Equity (TTM) against their respective IT Services and Software industry benchmarks.

Net Profit Margin (TTM)

SNOW

-36.43%

IT Services Industry

Max
19.82%
Q3
11.49%
Median
6.67%
Q1
3.61%
Min
-4.62%

SNOW has a negative Net Profit Margin of -36.43%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

ZS

-1.52%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

ZS has a negative Net Profit Margin of -1.52%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

SNOW vs. ZS: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Software industry benchmarks.

Operating Profit Margin (TTM)

SNOW

-41.37%

IT Services Industry

Max
21.69%
Q3
14.50%
Median
10.06%
Q1
6.98%
Min
0.06%

SNOW has a negative Operating Profit Margin of -41.37%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

ZS

-4.84%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

ZS has a negative Operating Profit Margin of -4.84%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

SNOW vs. ZS: A comparison of their Operating Profit Margin (TTM) against their respective IT Services and Software industry benchmarks.

Profitability at a Glance

SymbolSNOWZS
Return on Equity (TTM)-44.88%-2.54%
Return on Assets (TTM)-17.30%-0.78%
Net Profit Margin (TTM)-36.43%-1.52%
Operating Profit Margin (TTM)-41.37%-4.84%
Gross Profit Margin (TTM)66.58%77.38%

Financial Strength

Current Ratio (MRQ)

SNOW

1.58

IT Services Industry

Max
2.42
Q3
1.81
Median
1.47
Q1
1.09
Min
0.44

SNOW’s Current Ratio of 1.58 aligns with the median group of the IT Services industry, indicating that its short-term liquidity is in line with its sector peers.

ZS

1.24

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

ZS’s Current Ratio of 1.24 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

SNOW vs. ZS: A comparison of their Current Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

SNOW

0.94

IT Services Industry

Max
2.33
Q3
1.17
Median
0.54
Q1
0.15
Min
0.00

SNOW’s Debt-to-Equity Ratio of 0.94 is typical for the IT Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ZS

0.64

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

ZS’s Debt-to-Equity Ratio of 0.64 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.

SNOW vs. ZS: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Interest Coverage Ratio (TTM)

SNOW

--

IT Services Industry

Max
144.50
Q3
84.49
Median
13.76
Q1
2.59
Min
-28.13

Interest Coverage Ratio data for SNOW is currently unavailable.

ZS

-6.38

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

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.

SNOW vs. ZS: A comparison of their Interest Coverage Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Financial Strength at a Glance

SymbolSNOWZS
Current Ratio (MRQ)1.581.24
Quick Ratio (MRQ)1.501.20
Debt-to-Equity Ratio (MRQ)0.940.64
Interest Coverage Ratio (TTM)---6.38

Growth

Revenue Growth

SNOW 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

SNOW 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)

SNOW

0.00%

IT Services Industry

Max
2.80%
Q3
1.74%
Median
0.62%
Q1
0.00%
Min
0.00%

SNOW 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.

ZS

0.00%

Software Industry

Max
0.08%
Q3
0.03%
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.

SNOW vs. ZS: A comparison of their Dividend Yield (TTM) against their respective IT Services and Software industry benchmarks.

Dividend Payout Ratio (TTM)

SNOW

0.00%

IT Services Industry

Max
147.75%
Q3
63.58%
Median
24.63%
Q1
0.00%
Min
0.00%

SNOW 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.

ZS

0.00%

Software Industry

Max
1.32%
Q3
0.53%
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.

SNOW vs. ZS: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Dividend at a Glance

SymbolSNOWZS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

SNOW

--

IT Services Industry

Max
41.55
Q3
31.54
Median
23.25
Q1
18.12
Min
6.57

P/E Ratio data for SNOW is currently unavailable.

ZS

--

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

P/E Ratio data for ZS is currently unavailable.

SNOW vs. ZS: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

SNOW

16.88

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

With a P/S Ratio of 16.88, SNOW trades at a valuation that eclipses even the highest in the IT Services industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ZS

17.53

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

ZS’s P/S Ratio of 17.53 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.

SNOW vs. ZS: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

SNOW

22.13

IT Services Industry

Max
11.19
Q3
6.38
Median
3.47
Q1
2.31
Min
0.96

At 22.13, SNOW’s P/B Ratio is at an extreme premium to the IT Services industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ZS

19.39

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

ZS’s P/B Ratio of 19.39 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.

SNOW vs. ZS: A comparison of their Price-to-Book Ratio (MRQ) against their respective IT Services and Software industry benchmarks.

Valuation at a Glance

SymbolSNOWZS
Price-to-Earnings Ratio (TTM)----
Price-to-Sales Ratio (TTM)16.8817.53
Price-to-Book Ratio (MRQ)22.1319.39
Price-to-Free Cash Flow Ratio (TTM)88.0564.60