Zscaler vs Okta Which Offers More Value?

Zscaler and Okta are two prominent companies in the cybersecurity and identity management sectors, respectively. Zscaler specializes in cloud-based security solutions, offering protection for businesses against cyber threats. On the other hand, Okta focuses on providing identity and access management services to enhance security and streamline authentication processes. Both companies have garnered significant attention from investors, but their stock performances have varied. Understanding the fundamental differences between Zscaler and Okta stocks is crucial for making informed investment decisions in the cybersecurity sector.

Zscaler or Okta?

When comparing Zscaler and Okta, 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 Okta.

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 Okta 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, Okta 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 Okta's P/E ratio at -97.26. 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 Okta's P/B ratio is 2.16.

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 Okta's is 2.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Zscaler's ROE at -5.58% and Okta's ROE at -2.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $195.05 for Zscaler and $76.92 for Okta. Over the past year, Zscaler's prices ranged from $153.45 to $259.61, with a yearly change of 69.18%. Okta's prices fluctuated between $66.69 and $114.50, with a yearly change of 71.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.