U vs. ZM: Unity Software vs. Zoom Communications Stock Comparison
How do Unity Software (U) 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
Unity Software (U) and Zoom Communications (ZM) are both classified in the Application Software sub-industry within the broader Software industry, placing them in the closest GICS peer bucket.
| Profile Item | U | ZM |
|---|---|---|
| Name | Unity Software 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 | Application Software | Application Software |
| Market Capitalization | 22.85 billion USD | 26.23 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | September 18, 2020 | April 18, 2019 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | U | ZM |
|---|---|---|
| Total Return (1Y) | 30.56% | 12.58% |
| Total Return (3Y, Annualized) | 27.46% | 14.89% |
| Total Return (5Y, Annualized) | -21.16% | -18.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | U | ZM |
|---|---|---|
| Volatility (1Y, Annualized) | 71.11% | 45.03% |
| Beta (5Y) | 1.97 | 0.99 |
| Max Drawdown (5Y) | -93.07% | -79.08% |
| Avg. Volume (3M) | 10.92M | 2.88M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | U | ZM |
|---|---|---|
| Sharpe Ratio (1Y) | 0.37 | 0.18 |
| Sortino Ratio (1Y) | 0.51 | 0.28 |
Profitability
ROE (TTM)
Unity Software (U) reports a negative ROE of -9.66%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Zoom Communications (ZM) reports 32.14%, ranking against industry peers normally.
U
Software & Services industry group
-9.66%
- Max
- 53.85%
- Q3
- 17.90%
- Median
- 6.59%
- Q1
- -9.59%
- U
- -9.66%
- 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)
Unity Software (U) reports a negative net margin of -15.60%, usually indicating a net loss over the period. Meanwhile Zoom Communications (ZM) reports 65.19%, ranking against industry peers normally.
U
Software & Services industry group
-15.60%
- Max
- 41.17%
- Q3
- 15.28%
- Median
- 4.63%
- Q1
- -5.42%
- U
- -15.60%
- 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 Unity Software (U) at 16.95%, which runs around its industry’s norm.
U
Software & Services industry group
16.95%
- Max
- 46.89%
- Q3
- 17.64%
- U
- 16.95%
- 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 | U | ZM |
|---|---|---|
| ROE (TTM) | -9.66% | 32.14% |
| ROA (TTM) | -0.45% | 6.11% |
| Net Margin (TTM) | -15.60% | 65.19% |
| Operating Margin (TTM) | 16.95% | 24.61% |
| Gross Margin (TTM) | 78.49% | 77.66% |
Growth
Revenue Growth
Both Unity Software (U) at 2.01% and Zoom Communications (ZM) at 4.36% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.
EPS Growth
Only one side can be read here: Zoom Communications (ZM) reports EPS growth of 92.52%, ranked against its industry; Unity Software (U) has no EPS growth figure this period.
Growth Metrics
| Metric | U | ZM |
|---|---|---|
| Revenue Growth (YoY) | 2.01% | 4.36% |
| Revenue Growth (3Y CAGR) | 9.96% | 3.49% |
| EPS Growth (YoY) | -- | 92.52% |
| EPS Growth (3Y CAGR) | -- | 162.93% |
Financial Strength
Current Ratio (MRQ)
Unity Software (U) at 2.17 keeps current ratio within its industry’s typical mid-range, while Zoom Communications (ZM) at 3.83 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.
U
Software & Services industry group
2.17
- Max
- 5.11
- Q3
- 2.77
- U
- 2.17
- 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 Unity Software (U) at 0.66 runs a more typical debt-to-equity mix.
U
Software & Services industry group
0.66
- Max
- 2.52
- Q3
- 1.13
- U
- 0.66
- Median
- 0.40
- 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 | U | ZM |
|---|---|---|
| Current Ratio (MRQ) | 2.17 | 3.83 |
| Debt / Equity (MRQ) | 0.66 | 0.01 |
| Net Debt / EBITDA | -0.86 | -5.39 |
Dividends
Dividend Yield (TTM)
Neither Unity Software (U) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
U
Software & Services industry group
0.00%
- U
- 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 Unity Software (U) nor Zoom Communications (ZM) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.
U
Software & Services industry group
0.00%
- U
- 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 | U | ZM |
|---|---|---|
| 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: Zoom Communications (ZM) trades at 8.34 times trailing earnings, ranked against its peers, while Unity Software (U) has no P/E ratio this period.
U
Software & Services industry group
--
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
- U
- --
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 is priced about in line with its industry on P/S ratio, while Unity Software (U) at 10.48 sits in the pricier quartile — U costs more per dollar of sales.
U
Software & Services industry group
10.48
- Max
- 17.91
- U
- 10.48
- 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)
On P/B ratio, both Unity Software (U) at 7.03 and Zoom Communications (ZM) at 2.32 are valued close to their industries’ norm against book — neither stands out from peers.
U
Software & Services industry group
7.03
- Max
- 16.63
- Q3
- 8.50
- U
- 7.03
- 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 | U | ZM |
|---|---|---|
| P/E Ratio (TTM) | -- | 8.34 |
| P/S Ratio (TTM) | 10.48 | 5.25 |
| P/B Ratio (MRQ) | 7.03 | 2.32 |
| Free Cash Flow Yield (TTM) | 2.76% | 7.53% |