F5 vs Zscaler Which Is a Better Investment?

F5 Networks and Zscaler are two companies that operate in the network security and application delivery market. F5 focuses on delivering secure and fast applications for enterprises, while Zscaler specializes in cloud-based security solutions. Both companies have experienced growth in recent years due to the increasing demand for cybersecurity and cloud-based services. Investors looking to capitalize on the growth of the cybersecurity sector may consider investing in F5 or Zscaler stocks. This comparison will analyze the performance and prospects of both companies to help investors make an informed decision.

F5 or Zscaler?

When comparing F5 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 F5 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. F5 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. F5 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 F5 P/E ratio at 25.13 and Zscaler's P/E ratio at -548.80. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. F5 P/B ratio is 4.55 while Zscaler's P/B ratio is 24.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, F5 has seen a 5-year revenue growth of 0.33%, while Zscaler's is 2.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with F5's ROE at 19.00% and Zscaler's ROE at -5.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $241.86 for F5 and $199.54 for Zscaler. Over the past year, F5's prices ranged from $159.01 to $250.46, with a yearly change of 57.51%. Zscaler's prices fluctuated between $153.45 and $259.61, with a yearly change of 69.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.