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WDC vs. ZS: A Head-to-Head Stock Comparison

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Here’s a clear look at WDC and ZS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolWDCZS
Company NameWestern Digital CorporationZscaler, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryTechnology Hardware, Storage & PeripheralsSoftware
Market Capitalization26.24 billion USD42.63 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateOctober 31, 1978March 16, 2018
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of WDC 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.

WDC vs. ZS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolWDCZS
5-Day Price Return-0.79%1.04%
13-Week Price Return49.13%8.41%
26-Week Price Return48.17%27.45%
52-Week Price Return53.77%40.05%
Month-to-Date Return-3.88%-4.12%
Year-to-Date Return67.87%51.77%
10-Day Avg. Volume5.75M1.36M
3-Month Avg. Volume6.77M2.22M
3-Month Volatility30.47%33.64%
Beta1.731.07

Profitability

Return on Equity (TTM)

WDC

21.49%

Technology Hardware, Storage & Peripherals Industry

Max
47.24%
Q3
29.40%
Median
9.11%
Q1
6.06%
Min
-0.79%

WDC’s Return on Equity of 21.49% is on par with the norm for the Technology Hardware, Storage & Peripherals industry, indicating its profitability relative to shareholder equity is typical for the sector.

ZS

-2.54%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

ZS has a negative Return on Equity of -2.54%. 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.

WDC vs. ZS: A comparison of their Return on Equity (TTM) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Net Profit Margin (TTM)

WDC

14.23%

Technology Hardware, Storage & Peripherals Industry

Max
13.86%
Q3
8.17%
Median
4.62%
Q1
3.65%
Min
-0.21%

WDC’s Net Profit Margin of 14.23% is exceptionally high, placing it well beyond the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

ZS

-1.52%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

ZS has a negative Net Profit Margin of -1.52%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

WDC vs. ZS: A comparison of their Net Profit Margin (TTM) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Operating Profit Margin (TTM)

WDC

22.10%

Technology Hardware, Storage & Peripherals Industry

Max
17.80%
Q3
10.33%
Median
6.31%
Q1
4.86%
Min
2.53%

WDC’s Operating Profit Margin of 22.10% is exceptionally high, placing it well above the typical range for the Technology Hardware, Storage & Peripherals industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

ZS

-4.84%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

ZS has a negative Operating Profit Margin of -4.84%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

WDC vs. ZS: A comparison of their Operating Profit Margin (TTM) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Profitability at a Glance

SymbolWDCZS
Return on Equity (TTM)21.49%-2.54%
Return on Assets (TTM)9.38%-0.78%
Net Profit Margin (TTM)14.23%-1.52%
Operating Profit Margin (TTM)22.10%-4.84%
Gross Profit Margin (TTM)38.00%77.38%

Financial Strength

Current Ratio (MRQ)

WDC

1.08

Technology Hardware, Storage & Peripherals Industry

Max
2.47
Q3
1.98
Median
1.40
Q1
1.26
Min
0.70

WDC’s Current Ratio of 1.08 falls into the lower quartile for the Technology Hardware, Storage & Peripherals industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ZS

1.24

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

ZS’s Current Ratio of 1.24 aligns with the median group of the Software industry, indicating that its short-term liquidity is in line with its sector peers.

WDC vs. ZS: A comparison of their Current Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

WDC

0.85

Technology Hardware, Storage & Peripherals Industry

Max
1.47
Q3
0.93
Median
0.32
Q1
0.19
Min
0.00

WDC’s Debt-to-Equity Ratio of 0.85 is typical for the Technology Hardware, Storage & Peripherals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ZS

0.64

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

ZS’s Debt-to-Equity Ratio of 0.64 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.

WDC vs. ZS: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Interest Coverage Ratio (TTM)

WDC

2.04

Technology Hardware, Storage & Peripherals Industry

Max
204.63
Q3
90.22
Median
21.70
Q1
6.79
Min
-23.93

In the lower quartile for the Technology Hardware, Storage & Peripherals industry, WDC’s Interest Coverage Ratio of 2.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

ZS

-6.38

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
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.

WDC vs. ZS: A comparison of their Interest Coverage Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Financial Strength at a Glance

SymbolWDCZS
Current Ratio (MRQ)1.081.24
Quick Ratio (MRQ)0.841.20
Debt-to-Equity Ratio (MRQ)0.850.64
Interest Coverage Ratio (TTM)2.04-6.38

Growth

Revenue Growth

WDC vs. ZS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

WDC vs. ZS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

WDC

0.00%

Technology Hardware, Storage & Peripherals Industry

Max
4.50%
Q3
3.66%
Median
1.90%
Q1
0.00%
Min
0.00%

WDC 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.

ZS

0.00%

Software Industry

Max
0.08%
Q3
0.03%
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.

WDC vs. ZS: A comparison of their Dividend Yield (TTM) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Dividend Payout Ratio (TTM)

WDC

15.60%

Technology Hardware, Storage & Peripherals Industry

Max
142.87%
Q3
66.07%
Median
42.79%
Q1
0.00%
Min
0.00%

WDC’s Dividend Payout Ratio of 15.60% is within the typical range for the Technology Hardware, Storage & Peripherals industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ZS

0.00%

Software Industry

Max
1.32%
Q3
0.53%
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.

WDC vs. ZS: A comparison of their Dividend Payout Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Dividend at a Glance

SymbolWDCZS
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)15.60%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

WDC

13.66

Technology Hardware, Storage & Peripherals Industry

Max
43.16
Q3
27.56
Median
17.85
Q1
12.48
Min
6.21

WDC’s P/E Ratio of 13.66 is within the middle range for the Technology Hardware, Storage & Peripherals 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
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

P/E Ratio data for ZS is currently unavailable.

WDC vs. ZS: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

WDC

1.94

Technology Hardware, Storage & Peripherals Industry

Max
4.27
Q3
1.99
Median
0.93
Q1
0.45
Min
0.04

WDC’s P/S Ratio of 1.94 aligns with the market consensus for the Technology Hardware, Storage & Peripherals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ZS

17.53

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

ZS’s P/S Ratio of 17.53 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.

WDC vs. ZS: A comparison of their Price-to-Sales Ratio (TTM) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

WDC

3.99

Technology Hardware, Storage & Peripherals Industry

Max
12.51
Q3
6.11
Median
1.73
Q1
1.01
Min
0.31

WDC’s P/B Ratio of 3.99 is within the conventional range for the Technology Hardware, Storage & Peripherals industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ZS

19.39

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

ZS’s P/B Ratio of 19.39 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.

WDC vs. ZS: A comparison of their Price-to-Book Ratio (MRQ) against their respective Technology Hardware, Storage & Peripherals and Software industry benchmarks.

Valuation at a Glance

SymbolWDCZS
Price-to-Earnings Ratio (TTM)13.66--
Price-to-Sales Ratio (TTM)1.9417.53
Price-to-Book Ratio (MRQ)3.9919.39
Price-to-Free Cash Flow Ratio (TTM)18.2764.60