TWLO vs. ZM: Twilio vs. Zoom Communications Stock Comparison
How do Twilio (TWLO) 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
Twilio (TWLO) and Zoom Communications (ZM) both fall under the Software & Services industry group, but TWLO is classified in IT Services while ZM is classified in Software.
| Profile Item | TWLO | ZM |
|---|---|---|
| Name | Twilio 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 | 31.26 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | June 23, 2016 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | TWLO | ZM |
|---|---|---|
| Total Return (1Y) | 61.15% | 12.58% |
| Total Return (3Y, Annualized) | 54.31% | 14.89% |
| Total Return (5Y, Annualized) | -7.91% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | TWLO | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 63.75% | 45.03% |
| Beta (5Y) | 1.48 | 0.99 |
| Max Drawdown (5Y) | -86.25% | -79.08% |
| Avg. Volume (3M) | 3.05M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | TWLO | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | 0.89 | 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 Twilio (TWLO) at 14.92% is closer to the peer norm — stronger capital efficiency for ZM.
TWLO
Software & Services industry group
14.92%
- Max
- 53.85%
- Q3
- 17.90%
- TWLO
- 14.92%
- Median
- 6.59%
- 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% keeps the most of each sales dollar — above its industry’s net margin range — and Twilio (TWLO) at 21.82% also retains a top-quartile share.
TWLO
Software & Services industry group
21.82%
- Max
- 41.17%
- TWLO
- 21.82%
- Q3
- 15.28%
- 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 Twilio (TWLO) at 9.53%, which runs around its industry’s norm.
TWLO
Software & Services industry group
9.53%
- Max
- 46.89%
- Q3
- 17.64%
- TWLO
- 9.53%
- 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 | TWLO | ZM |
|---|---|---|
| ROE (TTM) | 14.92% | 32.14% |
| ROA (TTM) | 2.69% | 6.11% |
| Net Margin (TTM) | 21.82% | 65.19% |
| Operating Margin (TTM) | 9.53% | 24.61% |
| Gross Margin (TTM) | 48.61% | 77.66% |
Growth
Revenue Growth
Twilio (TWLO) at 13.66% 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
Only one side can be read here: Zoom Communications (ZM) reports EPS growth of 92.52%, ranked against its industry; Twilio (TWLO) has no EPS growth figure this period.
Growth Metrics
| Metric | TWLO | ZM |
|---|---|---|
| Revenue Growth (YoY) | 13.66% | 4.36% |
| Revenue Growth (3Y CAGR) | 9.82% | 3.49% |
| EPS Growth (YoY) | -- | 92.52% |
| EPS Growth (3Y CAGR) | -- | 162.93% |
Financial Strength
Current Ratio (MRQ)
Both Twilio (TWLO) at 4.47 and Zoom Communications (ZM) at 3.83 post current ratio above their industries’ typical mid-ranges — short-term liquidity appears comfortable, though unusually high readings can point to idle current assets.
TWLO
Software & Services industry group
4.47
- Max
- 5.11
- TWLO
- 4.47
- Q3
- 2.77
- Median
- 1.67
- 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)
Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Twilio (TWLO) at 0.12 runs a more typical debt-to-equity mix.
TWLO
Software & Services industry group
0.12
- Max
- 2.52
- Q3
- 1.13
- Median
- 0.40
- TWLO
- 0.12
- 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 | TWLO | ZM |
|---|---|---|
| Current Ratio (MRQ) | 4.47 | 3.83 |
| Debt / Equity (MRQ) | 0.12 | 0.01 |
| Net Debt / EBITDA | -3.13 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Twilio (TWLO) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
TWLO
Software & Services industry group
0.00%
- TWLO
- 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 Twilio (TWLO) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
TWLO
Software & Services industry group
0.00%
- TWLO
- 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 | TWLO | 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 Twilio (TWLO) at 25.38 is closer to its industry’s usual earnings multiple — a discount for ZM, though growth and earnings durability still matter.
TWLO
Software & Services industry group
25.38
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- TWLO
- 25.38
- 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)
On P/S ratio, both Twilio (TWLO) at 5.36 and Zoom Communications (ZM) at 5.25 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
TWLO
Software & Services industry group
5.36
- Max
- 17.91
- Q3
- 8.78
- TWLO
- 5.36
- 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 Twilio (TWLO) at 3.41 and Zoom Communications (ZM) at 2.32 are valued close to their industries’ norm against book — neither stands out from peers.
TWLO
Software & Services industry group
3.41
- Max
- 16.63
- Q3
- 8.50
- Median
- 4.30
- TWLO
- 3.41
- 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 | TWLO | ZM |
|---|---|---|
| P/E Ratio (TTM) | 25.38 | 8.34 |
| P/S Ratio (TTM) | 5.36 | 5.25 |
| P/B Ratio (MRQ) | 3.41 | 2.32 |
| Free Cash Flow Yield (TTM) | 3.45% | 7.53% |