Microsoft vs Zscaler Which Is Stronger?

Microsoft and Zscaler are two tech giants in the cybersecurity industry, each offering unique products and services that cater to the evolving needs of businesses worldwide. Microsoft, with its diverse portfolio of software and cloud solutions, has established itself as a leader in the technology sector. On the other hand, Zscaler specializes in cloud security, providing cutting-edge solutions to protect organizations from cyber threats. Investors are closely watching the performance of both stocks, as they navigate the competitive landscape of the cybersecurity market.

Microsoft or Zscaler?

When comparing Microsoft 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 Microsoft 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. Microsoft has a dividend yield of 0.72%, while Zscaler has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Microsoft reports a 5-year dividend growth of 10.16% year and a payout ratio of 24.63%. 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 Microsoft P/E ratio at 34.33 and Zscaler's P/E ratio at -523.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Microsoft P/B ratio is 10.80 while Zscaler's P/B ratio is 23.73.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Microsoft has seen a 5-year revenue growth of 0.99%, while Zscaler's is 2.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Microsoft's ROE at 34.56% and Zscaler's ROE at -5.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $416.00 for Microsoft and $195.05 for Zscaler. Over the past year, Microsoft's prices ranged from $362.90 to $468.35, with a yearly change of 29.06%. 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.