Zscaler vs F5 Which Offers More Value?

Zscaler and F5 Networks are both prominent players in the cybersecurity industry, offering various solutions for organizations to protect their digital assets. Zscaler specializes in cloud security, providing a cloud-based approach to secure web gateways and remote access solutions. On the other hand, F5 Networks focuses on application delivery networking, including load balancing, security, and optimization services. Both companies have seen significant growth in their stock prices in recent years, but each offers a unique set of products and services to meet different cybersecurity needs.

Zscaler or F5?

When comparing Zscaler and F5, 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 F5.

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 F5 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, F5 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 -835.00 and F5's P/E ratio at 26.97. 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 21.20 while F5's P/B ratio is 4.88.

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 F5's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zscaler's ROE at -3.05% and F5's ROE at 19.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $197.46 for Zscaler and $260.54 for F5. Over the past year, Zscaler's prices ranged from $153.45 to $259.61, with a yearly change of 69.18%. F5's prices fluctuated between $159.01 and $264.50, with a yearly change of 66.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.