U vs. ZS: Unity Software vs. Zscaler Stock Comparison
How do Unity Software (U) 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
Unity Software (U) and Zscaler (ZS) both belong to the Software industry, though U is classified under Application Software while ZS falls under Systems Software.
| Profile Item | U | ZS |
|---|---|---|
| Name | Unity Software Inc. | Zscaler Inc. |
| 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 | Systems Software |
| Market Capitalization | 22.85 billion USD | 32.23 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | Nasdaq |
| Listing Date | September 18, 2020 | March 16, 2018 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | U | ZS |
|---|---|---|
| Total Return (1Y) | 30.56% | -37.61% |
| Total Return (3Y, Annualized) | 27.46% | 5.36% |
| Total Return (5Y, Annualized) | -21.16% | -10.75% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | U | ZS |
|---|---|---|
| Volatility (1Y, Annualized) | 71.11% | 68.66% |
| Beta (5Y) | 1.97 | 0.88 |
| Max Drawdown (5Y) | -93.07% | -76.41% |
| Avg. Volume (3M) | 10.92M | 2.92M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | U | ZS |
|---|---|---|
| Sharpe Ratio (1Y) | 0.37 | -0.61 |
| Sortino Ratio (1Y) | 0.51 | -0.79 |
Profitability
ROE (TTM)
Both Unity Software (U) at -9.66% and Zscaler (ZS) at -2.87% report negative ROE values. Negative ROE can reflect losses or negative shareholders’ equity, so both readings need extra context.
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%
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%
Net Margin (TTM)
Both Unity Software (U) at -15.60% and Zscaler (ZS) at -1.89% report negative net margin values, usually indicating net losses over the period.
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%
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%
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 Unity Software (U) reports 16.95%, ranking against industry peers normally.
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%
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%
Profitability Metrics
| Metric | U | ZS |
|---|---|---|
| ROE (TTM) | -9.66% | -2.87% |
| ROA (TTM) | -0.45% | -1.03% |
| Net Margin (TTM) | -15.60% | -1.89% |
| Operating Margin (TTM) | 16.95% | -1.01% |
| Gross Margin (TTM) | 78.49% | 76.87% |
Growth
Revenue Growth
Zscaler (ZS) at 25.42% is around its peer norm for revenue growth, while Unity Software (U) at 2.01% drops into the bottom quartile, signaling weaker demand or pricing momentum.
EPS Growth
Neither Unity Software (U) nor Zscaler (ZS) reports a EPS growth value for this period, so a direct comparison isn't possible.
Growth Metrics
| Metric | U | ZS |
|---|---|---|
| Revenue Growth (YoY) | 2.01% | 25.42% |
| Revenue Growth (3Y CAGR) | 9.96% | 27.51% |
| EPS Growth (YoY) | -- | -- |
| EPS Growth (3Y CAGR) | -- | -- |
Financial Strength
Current Ratio (MRQ)
Both Unity Software (U) at 2.17 and Zscaler (ZS) at 1.70 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity 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
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
Debt / Equity (MRQ)
Both Unity Software (U) at 0.66 and Zscaler (ZS) at 0.72 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
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
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
Financial Strength Metrics
| Metric | U | ZS |
|---|---|---|
| Current Ratio (MRQ) | 2.17 | 1.70 |
| Debt / Equity (MRQ) | 0.66 | 0.72 |
| Net Debt / EBITDA | -0.86 | -36.63 |
Dividends
Dividend Yield (TTM)
Neither Unity Software (U) nor Zscaler (ZS) 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%
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%
Dividend Payout Ratio (TTM)
Neither Unity Software (U) nor Zscaler (ZS) 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%
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%
Dividend Metrics
| Metric | U | ZS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Neither Unity Software (U) nor Zscaler (ZS) reports a P/E ratio value for this period, so a direct comparison isn’t possible.
U
Software & Services industry group
--
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
- U
- --
ZS
Software & Services industry group
--
- Max
- 112.94
- Q3
- 60.32
- Median
- 32.91
- Q1
- 18.77
- Min
- 6.69
- ZS
- --
P/S Ratio (TTM)
Both Unity Software (U) at 10.48 and Zscaler (ZS) at 9.61 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
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
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
P/B Ratio (MRQ)
Unity Software (U) at 7.03 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.
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
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
Valuation Metrics
| Metric | U | ZS |
|---|---|---|
| P/E Ratio (TTM) | -- | -- |
| P/S Ratio (TTM) | 10.48 | 9.61 |
| P/B Ratio (MRQ) | 7.03 | 12.40 |
| Free Cash Flow Yield (TTM) | 2.76% | 3.34% |