Zscaler vs Cloudflare Which Is More Profitable?

Zscaler and Cloudflare are two leading companies in the cybersecurity and cloud computing industries. Zscaler is a cloud-based security platform that provides advanced protection for organizations against cyber threats. Cloudflare, on the other hand, offers a range of web performance and security services for websites and applications. Both companies have seen significant growth in their stock prices in recent years, with investors eager to capitalize on the increasing demand for secure online services. Let's dive deeper into the comparison of Zscaler vs Cloudflare stocks.

Zscaler or Cloudflare?

When comparing Zscaler and Cloudflare, 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 Zscaler and Cloudflare.

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. Zscaler has a dividend yield of -%, while Cloudflare has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Zscaler reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Cloudflare 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 Zscaler P/E ratio at -523.86 and Cloudflare's P/E ratio at -338.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Zscaler P/B ratio is 23.73 while Cloudflare's P/B ratio is 32.64.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Zscaler has seen a 5-year revenue growth of 2.75%, while Cloudflare's is 3.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zscaler's ROE at -5.58% and Cloudflare's ROE at -10.99%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $195.05 for Zscaler and $90.80 for Cloudflare. Over the past year, Zscaler's prices ranged from $153.45 to $259.61, with a yearly change of 69.18%. Cloudflare's prices fluctuated between $62.39 and $116.00, with a yearly change of 85.93%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.