Analyzing Zscaler (ZS) & Its Competitors

Zscaler (NASDAQ: ZS) is one of 38 public companies in the “Custom computer programming services” industry, but how does it weigh in compared to its rivals? We will compare Zscaler to similar businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.


This table compares Zscaler and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zscaler N/A N/A N/A
Zscaler Competitors 1.12% 97.69% 4.69%

Earnings & Valuation

This table compares Zscaler and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Zscaler $190.17 million -$33.65 million -137.55
Zscaler Competitors $2.00 billion $177.09 million -3.61

Zscaler’s rivals have higher revenue and earnings than Zscaler. Zscaler is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

23.1% of Zscaler shares are held by institutional investors. Comparatively, 59.4% of shares of all “Custom computer programming services” companies are held by institutional investors. 11.7% of shares of all “Custom computer programming services” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Zscaler and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zscaler 0 8 2 1 2.36
Zscaler Competitors 221 927 1589 70 2.54

Zscaler currently has a consensus target price of $35.86, indicating a potential downside of 15.89%. As a group, “Custom computer programming services” companies have a potential downside of 1.12%. Given Zscaler’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Zscaler has less favorable growth aspects than its rivals.


Zscaler rivals beat Zscaler on 11 of the 12 factors compared.

About Zscaler

Zscaler, Inc. operates as a cloud security company worldwide. The company develops a software-as-a-service based security platform that secures access for users and devices to applications and services. It serves airline and transportation, conglomerate, consumer good and retail, financial service, healthcare, manufacturing, media and communication, public sector and education, technology, and telecommunications service industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

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