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TWLO vs. ZS: Twilio vs. Zscaler Stock Comparison

How do Twilio (TWLO) 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

Twilio (TWLO) and Zscaler (ZS) both fall under the Software & Services industry group, but TWLO is classified in IT Services while ZS is classified in Software.

Company profile comparison for Twilio (TWLO) and Zscaler (ZS)
Profile ItemTWLOZS
NameTwilio Inc. Class A Common StockZscaler Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryInternet Services & InfrastructureSystems Software
Market Capitalization31.26 billion USD32.23 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJune 23, 2016March 16, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

TWLO
ZS
GSPC
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Twilio (TWLO) 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 Twilio (TWLO) and Zscaler (ZS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Twilio (TWLO) and Zscaler (ZS)
MetricTWLOZS
Total Return (1Y)61.15%-37.61%
Total Return (3Y, Annualized)54.31%5.36%
Total Return (5Y, Annualized)-7.91%-10.75%

Risk Profile

Drawdown History

TWLO
ZS
GSPC
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Twilio (TWLO) 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 Twilio (TWLO) and Zscaler (ZS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Twilio (TWLO) and Zscaler (ZS)
MetricTWLOZS
Volatility (1Y, Annualized)63.75%68.66%
Beta (5Y)1.480.88
Max Drawdown (5Y)-86.25%-76.41%
Avg. Volume (3M)3.05M2.92M

Risk-Adjusted Performance

Risk-Return Positioning

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TWLO 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 Twilio (TWLO) and Zscaler (ZS)
MetricTWLOZS
Sharpe Ratio (1Y)0.89-0.61
Sortino Ratio (1Y)1.49-0.79

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 Twilio (TWLO) reports 14.92%, ranking against industry peers normally.

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%

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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Twilio (TWLO) 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 Twilio (TWLO) reports 21.82%, ranking against industry peers normally.

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%

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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Twilio (TWLO) 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 Twilio (TWLO) reports 9.53%, ranking against industry peers normally.

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%

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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Twilio (TWLO) vs. Zscaler (ZS): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Twilio (TWLO) and Zscaler (ZS)
MetricTWLOZS
ROE (TTM)14.92%-2.87%
ROA (TTM)2.69%-1.03%
Net Margin (TTM)21.82%-1.89%
Operating Margin (TTM)9.53%-1.01%
Gross Margin (TTM)48.61%76.87%

Growth

Revenue Growth

Both Twilio (TWLO) at 13.66% 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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Twilio (TWLO) vs. Zscaler (ZS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Neither Twilio (TWLO) nor Zscaler (ZS) reports a EPS growth value for this period, so a direct comparison isn't possible.

Growth Metrics

Growth metrics for Twilio (TWLO) and Zscaler (ZS)
MetricTWLOZS
Revenue Growth (YoY)13.66%25.42%
Revenue Growth (3Y CAGR)9.82%27.51%
EPS Growth (YoY)----
EPS Growth (3Y CAGR)----

Financial Strength

Current Ratio (MRQ)

Zscaler (ZS) at 1.70 keeps current ratio within its industry’s typical mid-range, while Twilio (TWLO) at 4.47 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

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

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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Twilio (TWLO) vs. Zscaler (ZS): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Twilio (TWLO) at 0.12 and Zscaler (ZS) at 0.72 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

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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Twilio (TWLO) 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 Twilio (TWLO) and Zscaler (ZS)
MetricTWLOZS
Current Ratio (MRQ)4.471.70
Debt / Equity (MRQ)0.120.72
Net Debt / EBITDA-3.13-36.63

Dividends

Dividend Yield (TTM)

Neither Twilio (TWLO) nor Zscaler (ZS) 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%

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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Twilio (TWLO) vs. Zscaler (ZS): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Twilio (TWLO) nor Zscaler (ZS) 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%

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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Twilio (TWLO) vs. Zscaler (ZS): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Twilio (TWLO) and Zscaler (ZS)
MetricTWLOZS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Twilio (TWLO) trades at 25.38 times trailing earnings, ranked against its peers, while Zscaler (ZS) has no P/E ratio this period.

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

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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Twilio (TWLO) vs. Zscaler (ZS): ZS does not report P/E ratio, so it has no value marker; TWLO is benchmarked against the Software & Services industry group.

P/S Ratio (TTM)

Twilio (TWLO) at 5.36 is priced about in line with its industry on P/S ratio, while Zscaler (ZS) at 9.61 sits in the pricier quartile — ZS costs more per dollar of sales.

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

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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Twilio (TWLO) vs. Zscaler (ZS): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Twilio (TWLO) at 3.41 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.

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

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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Twilio (TWLO) vs. Zscaler (ZS): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Twilio (TWLO) and Zscaler (ZS)
MetricTWLOZS
P/E Ratio (TTM)25.38--
P/S Ratio (TTM)5.369.61
P/B Ratio (MRQ)3.4112.40
Free Cash Flow Yield (TTM)3.45%3.34%