Financial Contrast: NCR Voyix (NYSE:VYX) and Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS) and NCR Voyix (NYSE:VYX) are both technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Zscaler and NCR Voyix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zscaler	1	7	35	0	2.79
NCR Voyix	0	3	3	0	2.50

Zscaler currently has a consensus price target of $238.07, suggesting a potential upside of 11.48%. NCR Voyix has a consensus price target of $12.40, suggesting a potential upside of 84.28%. Given NCR Voyix’s higher possible upside, analysts plainly believe NCR Voyix is more favorable than Zscaler.

Earnings and Valuation

This table compares Zscaler and NCR Voyix”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zscaler	$3.35 billion	10.39	-$63.18 million	($0.39)	-547.56
NCR Voyix	$2.69 billion	0.35	$62.00 million	$0.40	16.82

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

Risk and Volatility

Zscaler has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, NCR Voyix has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

46.5% of Zscaler shares are held by institutional investors. Comparatively, 97.0% of NCR Voyix shares are held by institutional investors. 17.2% of Zscaler shares are held by company insiders. Comparatively, 0.5% of NCR Voyix shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Zscaler and NCR Voyix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zscaler	-1.88%	1.23%	0.40%
NCR Voyix	2.53%	11.23%	2.61%

Summary

NCR Voyix beats Zscaler on 9 of the 14 factors compared between the two stocks.

About Zscaler

Zscaler, Inc. operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also provides Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. In addition, the company offers Posture Control solutions comprising Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and PaaS to reduce risk and ensure compliance with industry and organizational benchmarks; Cloud Infrastructure Entitlement Management that detects and remediates excessive or unused cloud permissions and enforces least privileged access without disrupting productivity; Infrastructure as Code (IaC), which analyzes IaC templates to identify misconfigurations and other security issues prior to deployment to cloud infrastructure; and Vulnerability Scanning and Data Loss Prevention solutions. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. The company serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services 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.

About NCR Voyix

NCR Voyix Corporation provides various software and services in the United States, the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company operates through three segments: Retail; Restaurants; and Digital Banking. It offers software, services, and hardware; and digital banking solutions for financial institution’s consumer and business customers. The company provides solutions for banking channel services, transaction processing, imaging, and branch services. In addition, it offers solutions for retail industry comprising comprehensive API-point of sale (POS) retail software platforms and applications, hardware terminals and peripherals, payment processing solutions, and consumer engagement solutions, as well as self-service kiosks, which consists of self-checkout (SCO). Further, the company provides technology solutions to customers in the restaurant industry comprising table-service, quick-service, and fast casual restaurants. Additionally, it offers cloud-based and platform-enabled software applications for point-of-sale, back office, payment processing, kitchen production, restaurant management, eCommerce, mobile ordering, and consumer marketing and loyalty; and restaurant -oriented hardware products, such as POS terminals, kitchen display systems, handheld devices, printers, and peripherals. It also offers solutions for customer account opening and onboarding across digital, branch, and call center channels. The company serves grocery stores, drug stores, and box retailers; and quick service, table service and fast casual restaurants of all sizes, small-and-medium sized businesses to large multi-national, and enterprise clients. The company was formerly known as NCR Corporation and changed its name to NCR Voyix Corporation in October 2023. NCR Voyix Corporation was incorporated in 1884 and is headquartered in Atlanta, Georgia.