TXN vs. ZS: A Head-to-Head Stock Comparison
Here’s a clear look at TXN and ZS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | TXN | ZS |
|---|---|---|
| Company Name | Texas Instruments Incorporated | Zscaler, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry Group | Semiconductors & Semiconductor Equipment | Software & Services |
| GICS Industry | Semiconductors & Semiconductor Equipment | Software |
| GICS Sub-Industry | Semiconductors | Systems Software |
| Market Capitalization | 280.46 billion USD | 24.71 billion USD |
| Currency | USD | USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 1, 1972 | March 16, 2018 |
| Security Type | Common Stock | Common Stock |
TXN’s market capitalization (280.46 billion USD) is substantially larger than ZS’s (24.71 billion USD), indicating a significant difference in their market valuations.
Historical Performance
This chart compares the performance of TXN 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.
Historical Performance at a Glance
| Symbol | TXN | ZS |
|---|---|---|
| 5-Day Price Return | 7.08% | 1.03% |
| 13-Week Price Return | 36.02% | -10.12% |
| 26-Week Price Return | 90.96% | -51.65% |
| 52-Week Price Return | 64.50% | -37.12% |
| Month-to-Date Return | 9.64% | 17.62% |
| Year-to-Date Return | 77.63% | -31.66% |
| 10-Day Avg. Volume | 7.25M | 2.99M |
| 3-Month Avg. Volume | 7.79M | 2.80M |
| 3-Month Volatility | 49.27% | 65.29% |
| Beta | 1.32 | 1.00 |
With betas of 1.32 for TXN and 1.00 for ZS, both stocks show similar sensitivity to overall market movements.
Profitability
Return on Equity (TTM)
TXN
32.49%
Semiconductors & Semiconductor Equipment Industry
- Max
- 44.68%
- Q3
- 19.80%
- Median
- 8.08%
- Q1
- 0.67%
- Min
- -26.02%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TXN’s Return on Equity of 32.49% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
ZS
-3.48%
Software Industry
- Max
- 62.31%
- Q3
- 22.20%
- Median
- 7.70%
- Q1
- -6.27%
- Min
- -44.49%
ZS has a negative Return on Equity of -3.48%. 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.
Net Profit Margin (TTM)
TXN
29.11%
Semiconductors & Semiconductor Equipment Industry
- Max
- 55.60%
- Q3
- 23.02%
- Median
- 9.55%
- Q1
- -0.68%
- Min
- -28.56%
A Net Profit Margin of 29.11% places TXN in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
ZS
-2.25%
Software Industry
- Max
- 44.20%
- Q3
- 17.96%
- Median
- 8.48%
- Q1
- -3.30%
- Min
- -34.99%
ZS has a negative Net Profit Margin of -2.25%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
Operating Profit Margin (TTM)
TXN
35.29%
Semiconductors & Semiconductor Equipment Industry
- Max
- 60.38%
- Q3
- 27.36%
- Median
- 11.42%
- Q1
- 1.67%
- Min
- -35.68%
An Operating Profit Margin of 35.29% places TXN in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
ZS
-4.86%
Software Industry
- Max
- 50.37%
- Q3
- 18.75%
- Median
- 6.25%
- Q1
- -3.70%
- Min
- -34.31%
ZS has a negative Operating Profit Margin of -4.86%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | TXN | ZS |
|---|---|---|
| Return on Equity (TTM) | 32.49% | -3.48% |
| Return on Assets (TTM) | 15.45% | -1.08% |
| Net Profit Margin (TTM) | 29.11% | -2.25% |
| Operating Profit Margin (TTM) | 35.29% | -4.86% |
| Gross Profit Margin (TTM) | 57.32% | 76.56% |
Financial Strength
Current Ratio (MRQ)
TXN
4.46
Semiconductors & Semiconductor Equipment Industry
- Max
- 7.52
- Q3
- 4.78
- Median
- 2.84
- Q1
- 2.27
- Min
- 1.02
TXN’s Current Ratio of 4.46 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.
ZS
1.90
Software Industry
- Max
- 4.59
- Q3
- 2.54
- Median
- 1.66
- Q1
- 1.12
- Min
- 0.47
ZS’s Current Ratio of 1.90 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
TXN
0.84
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.34
- Q3
- 0.56
- Median
- 0.18
- Q1
- 0.00
- Min
- 0.00
TXN’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.84. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
ZS
0.78
Software Industry
- Max
- 2.69
- Q3
- 1.13
- Median
- 0.33
- Q1
- 0.00
- Min
- 0.00
ZS’s Debt-to-Equity Ratio of 0.78 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.
Interest Coverage Ratio (TTM)
TXN
11.52
Semiconductors & Semiconductor Equipment Industry
- Max
- 114.00
- Q3
- 50.26
- Median
- 19.85
- Q1
- 2.04
- Min
- -69.60
TXN’s Interest Coverage Ratio of 11.52 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
ZS
-6.38
Software Industry
- Max
- 45.58
- Q3
- 11.88
- Median
- -0.62
- Q1
- -14.80
- 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.
Financial Strength at a Glance
| Symbol | TXN | ZS |
|---|---|---|
| Current Ratio (MRQ) | 4.46 | 1.90 |
| Quick Ratio (MRQ) | 2.94 | 1.83 |
| Debt-to-Equity Ratio (MRQ) | 0.84 | 0.78 |
| Interest Coverage Ratio (TTM) | 11.52 | -6.38 |
Growth
Revenue Growth
Revenue Growth at a Glance
| Symbol | TXN | ZS |
|---|---|---|
| Revenue Growth (MRQ vs Prior YoY) | 18.58% | 25.91% |
| Revenue Growth (TTM vs Prior YoY) | 14.89% | 23.91% |
| 3-Year Revenue CAGR | -4.07% | 34.82% |
| 5-Year Revenue CAGR | 4.10% | 44.03% |
EPS Growth
EPS Growth at a Glance
| Symbol | TXN | ZS |
|---|---|---|
| EPS Growth (MRQ vs Prior YoY) | 31.33% | -- |
| EPS Growth (TTM vs Prior YoY) | 10.83% | -- |
| 3-Year EPS CAGR | -16.62% | -- |
| 5-Year EPS CAGR | -1.80% | -- |
Dividend
Dividend Yield (TTM)
TXN
1.80%
Semiconductors & Semiconductor Equipment Industry
- Max
- 0.96%
- Q3
- 0.43%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TXN’s Dividend Yield of 1.80% is exceptionally high, placing it well above the typical range for the Semiconductors & Semiconductor Equipment industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
ZS
0.00%
Software Industry
- Max
- 0.00%
- Q3
- 0.00%
- 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.
Dividend Payout Ratio (TTM)
TXN
94.13%
Semiconductors & Semiconductor Equipment Industry
- Max
- 54.80%
- Q3
- 23.18%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
At 94.13%, TXN’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Semiconductors & Semiconductor Equipment industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
ZS
0.00%
Software Industry
- Max
- 0.00%
- Q3
- 0.00%
- 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.
Dividend at a Glance
| Symbol | TXN | ZS |
|---|---|---|
| Dividend Yield (TTM) | 1.80% | 0.00% |
| Dividend Payout Ratio (TTM) | 94.13% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
TXN
52.35
Semiconductors & Semiconductor Equipment Industry
- Max
- 226.85
- Q3
- 116.19
- Median
- 62.92
- Q1
- 41.45
- Min
- 14.63
TXN’s P/E Ratio of 52.35 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
ZS
--
Software Industry
- Max
- 97.74
- Q3
- 59.09
- Median
- 28.54
- Q1
- 14.55
- Min
- 0.38
P/E Ratio data for ZS is currently unavailable.
Price-to-Sales Ratio (TTM)
TXN
15.24
Semiconductors & Semiconductor Equipment Industry
- Max
- 38.36
- Q3
- 19.51
- Median
- 10.14
- Q1
- 4.73
- Min
- 0.17
TXN’s P/S Ratio of 15.24 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ZS
8.23
Software Industry
- Max
- 14.62
- Q3
- 7.88
- Median
- 3.94
- Q1
- 2.25
- Min
- 0.36
ZS’s P/S Ratio of 8.23 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.
Price-to-Book Ratio (MRQ)
TXN
10.53
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.60
- Q3
- 7.94
- Median
- 4.57
- Q1
- 2.38
- Min
- 0.45
TXN’s P/B Ratio of 10.53 is in the upper tier for the Semiconductors & Semiconductor Equipment 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.
ZS
14.57
Software Industry
- Max
- 20.48
- Q3
- 10.52
- Median
- 4.84
- Q1
- 2.66
- Min
- 0.32
ZS’s P/B Ratio of 14.57 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.
Valuation at a Glance
| Symbol | TXN | ZS |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 52.35 | -- |
| Price-to-Sales Ratio (TTM) | 15.24 | 8.23 |
| Price-to-Book Ratio (MRQ) | 10.53 | 14.57 |
| Price-to-Free Cash Flow Ratio (TTM) | 75.51 | 28.28 |