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

Insider & Institutional Ownership

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

Profitability

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 -$33.64 million -129.45
Zscaler Competitors $2.00 billion $177.09 million -3.69

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.

Analyst Recommendations

This is a summary of current ratings and price targets for Zscaler and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zscaler 0 8 2 1 2.36
Zscaler Competitors 223 934 1593 70 2.54

Zscaler presently has a consensus price target of $35.86, indicating a potential downside of 10.63%. As a group, “Custom computer programming services” companies have a potential upside of 0.40%. Given Zscaler’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Zscaler has less favorable growth aspects than its rivals.

Summary

Zscaler rivals beat Zscaler on 10 of the 11 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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