Zscaler (ZS) Competitors

Shopify (NYSE:SHOP) and Zscaler (NASDAQ:ZS) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, media sentiment, risk, analyst recommendations, profitability, institutional ownership and community ranking.

Do institutionals and insiders believe in SHOP or ZS?

69.3% of Shopify shares are owned by institutional investors. Comparatively, 46.5% of Zscaler shares are owned by institutional investors. 18.1% of Zscaler shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Does the media prefer SHOP or ZS?

In the previous week, Shopify had 30 more articles in the media than Zscaler. MarketBeat recorded 71 mentions for Shopify and 41 mentions for Zscaler. Zscaler's average media sentiment score of 0.95 beat Shopify's score of 0.62 indicating that Zscaler is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Shopify	39 Very Positive mention(s)	5 Positive mention(s)	5 Neutral mention(s)	9 Negative mention(s)	0 Very Negative mention(s)	Positive
Zscaler	22 Very Positive mention(s)	2 Positive mention(s)	8 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Positive

Does the MarketBeat Community believe in SHOP or ZS?

Shopify received 891 more outperform votes than Zscaler when rated by MarketBeat users. Likewise, 66.39% of users gave Shopify an outperform vote while only 60.96% of users gave Zscaler an outperform vote.

Company	Underperform	Outperform
Shopify	Outperform Votes 1422 66.39%	Underperform Votes 720 33.61%
Zscaler	Outperform Votes 531 60.96%	Underperform Votes 340 39.04%

Is SHOP or ZS more profitable?

Shopify has a net margin of 22.74% compared to Zscaler's net margin of -1.58%. Shopify's return on equity of 12.00% beat Zscaler's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Shopify	22.74%	12.00%	9.79%
Zscaler	-1.58%	-0.75%	-0.20%

Which has more risk and volatility, SHOP or ZS?

Shopify has a beta of 2.82, meaning that its stock price is 182% more volatile than the S&P 500. Comparatively, Zscaler has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Which has higher earnings and valuation, SHOP or ZS?

Shopify has higher revenue and earnings than Zscaler. Zscaler is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$8.88B	13.27	$2.02B	$1.55	58.71
Zscaler	$2.42B	12.81	-$57.71M	-$0.11	-1,823.55

Do analysts prefer SHOP or ZS?

Shopify currently has a consensus target price of $119.66, suggesting a potential upside of 31.49%. Zscaler has a consensus target price of $234.16, suggesting a potential upside of 16.73%. Given Shopify's higher possible upside, research analysts plainly believe Shopify is more favorable than Zscaler.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	1 Sell rating(s)	14 Hold rating(s)	24 Buy rating(s)	1 Strong Buy rating(s)	2.63
Zscaler	0 Sell rating(s)	9 Hold rating(s)	24 Buy rating(s)	1 Strong Buy rating(s)	2.76

Summary

Shopify beats Zscaler on 14 of the 17 factors compared between the two stocks.