Zscaler vs CrowdStrike Which Is a Smarter Choice?

Zscaler and CrowdStrike are two leading cybersecurity companies that have been making waves in the stock market. Zscaler specializes in cloud-based security solutions, while CrowdStrike focuses on endpoint protection. Both companies have seen significant growth in recent years as the demand for cybersecurity services continues to rise. Investors have been keeping a close eye on their stocks, eager to see which company will come out on top in this fast-evolving industry.

Zscaler or CrowdStrike?

When comparing Zscaler and CrowdStrike, 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 CrowdStrike.

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 CrowdStrike 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, CrowdStrike 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 -846.98 and CrowdStrike's P/E ratio at 671.97. 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 21.51 while CrowdStrike's P/B ratio is 27.84.

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 CrowdStrike's is 12.86%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zscaler's ROE at -3.05% and CrowdStrike's ROE at 4.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $200.17 for Zscaler and $344.60 for CrowdStrike. Over the past year, Zscaler's prices ranged from $153.45 to $259.61, with a yearly change of 69.18%. CrowdStrike's prices fluctuated between $200.81 and $398.33, with a yearly change of 98.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.