Cloudflare vs Zscaler

Cloudflare and Zscaler are two leading companies in the cybersecurity and cloud computing industries, making them attractive options for investors looking to capitalize on the growing demand for online security solutions. Both companies have experienced significant growth in recent years, with Cloudflare specializing in web performance and security, while Zscaler focuses on cloud-based security solutions. Investors may consider factors such as revenue growth, market share, and competitive advantages when comparing Cloudflare and Zscaler stocks for investment opportunities.

Cloudflare or Zscaler?

When comparing Cloudflare and Zscaler, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Cloudflare and Zscaler.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Cloudflare has a dividend yield of -%, while Zscaler has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cloudflare reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Zscaler reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Cloudflare P/E ratio at -313.20 and Zscaler's P/E ratio at -512.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cloudflare P/B ratio is 36.25 while Zscaler's P/B ratio is 23.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cloudflare has seen a 5-year revenue growth of 3.79%, while Zscaler's is 2.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cloudflare's ROE at -12.99% and Zscaler's ROE at -5.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.57 for Cloudflare and $194.27 for Zscaler. Over the past year, Cloudflare's prices ranged from $53.88 to $116.00, with a yearly change of 115.29%. Zscaler's prices fluctuated between $152.60 and $259.61, with a yearly change of 70.12%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.