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ZM vs. ZS: Zoom Communications vs. Zscaler Stock Comparison

How do Zoom Communications (ZM) 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

Zoom Communications (ZM) and Zscaler (ZS) both belong to the Software industry, though ZM is classified under Application Software while ZS falls under Systems Software.

Company profile comparison for Zoom Communications (ZM) and Zscaler (ZS)
Profile ItemZMZS
NameZoom Communications, Inc. Class A Common StockZscaler Inc.
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustrySoftwareSoftware
GICS Sub-IndustryApplication SoftwareSystems Software
Market Capitalization26.23 billion USD32.23 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateApril 18, 2019March 16, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ZM
ZS
GSPC
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Zoom Communications (ZM) 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 Zoom Communications (ZM) and Zscaler (ZS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Zoom Communications (ZM) and Zscaler (ZS)
MetricZMZS
Total Return (1Y)12.58%-37.61%
Total Return (3Y, Annualized)14.89%5.36%
Total Return (5Y, Annualized)-18.67%-10.75%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for Zoom Communications (ZM) and Zscaler (ZS)
MetricZMZS
Volatility (1Y, Annualized)45.03%68.66%
Beta (5Y)0.990.88
Max Drawdown (5Y)-79.08%-76.41%
Avg. Volume (3M)2.88M2.92M

Risk-Adjusted Performance

Risk-Return Positioning

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ZM 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 Zoom Communications (ZM) and Zscaler (ZS)
MetricZMZS
Sharpe Ratio (1Y)0.18-0.61
Sortino Ratio (1Y)0.28-0.79

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 Zoom Communications (ZM) reports 32.14%, ranking against industry peers normally.

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%

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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Zoom Communications (ZM) 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 Zoom Communications (ZM) reports 65.19%, ranking against industry peers normally.

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%

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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Zoom Communications (ZM) 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 Zoom Communications (ZM) reports 24.61%, ranking against industry peers normally.

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%

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

Profitability Metrics

Profitability metrics for Zoom Communications (ZM) and Zscaler (ZS)
MetricZMZS
ROE (TTM)32.14%-2.87%
ROA (TTM)6.11%-1.03%
Net Margin (TTM)65.19%-1.89%
Operating Margin (TTM)24.61%-1.01%
Gross Margin (TTM)77.66%76.87%

Growth

Revenue Growth

Zscaler (ZS) at 25.42% is around its peer norm for revenue growth, while Zoom Communications (ZM) at 4.36% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Zoom Communications (ZM) vs. Zscaler (ZS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Zoom Communications (ZM) reports EPS growth of 92.52%, ranked against its industry; Zscaler (ZS) has no EPS growth figure this period.

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Zoom Communications (ZM) vs. Zscaler (ZS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Zoom Communications (ZM) and Zscaler (ZS)
MetricZMZS
Revenue Growth (YoY)4.36%25.42%
Revenue Growth (3Y CAGR)3.49%27.51%
EPS Growth (YoY)92.52%--
EPS Growth (3Y CAGR)162.93%--

Financial Strength

Current Ratio (MRQ)

Zscaler (ZS) at 1.70 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.

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

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

Debt / Equity (MRQ)

Zoom Communications (ZM) at 0.01 keeps leverage in the lower industry quartile, while Zscaler (ZS) at 0.72 runs a more typical debt-to-equity mix.

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

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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Zoom Communications (ZM) 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 Zoom Communications (ZM) and Zscaler (ZS)
MetricZMZS
Current Ratio (MRQ)3.831.70
Debt / Equity (MRQ)0.010.72
Net Debt / EBITDA-5.39-36.63

Dividends

Dividend Yield (TTM)

Neither Zoom Communications (ZM) nor Zscaler (ZS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

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%

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

Dividend Payout Ratio (TTM)

Neither Zoom Communications (ZM) nor Zscaler (ZS) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

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%

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

Dividend Metrics

Dividend metrics for Zoom Communications (ZM) and Zscaler (ZS)
MetricZMZS
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 Zscaler (ZS) has no P/E ratio this period.

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

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

P/S Ratio (TTM)

Zoom Communications (ZM) at 5.25 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.

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

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

P/B Ratio (MRQ)

Zoom Communications (ZM) at 2.32 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.

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

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

Valuation Metrics

Valuation metrics for Zoom Communications (ZM) and Zscaler (ZS)
MetricZMZS
P/E Ratio (TTM)8.34--
P/S Ratio (TTM)5.259.61
P/B Ratio (MRQ)2.3212.40
Free Cash Flow Yield (TTM)7.53%3.34%