CyberArk Software (NASDAQ:CYBR) & Zscaler (NASDAQ:ZS) Financial Comparison

CyberArk Software (NASDAQ:CYBR) and Zscaler (NASDAQ:ZS) are both large-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares CyberArk Software and Zscaler’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CyberArk Software	-13.78%	0.44%	0.27%
Zscaler	-1.52%	-0.59%	-0.18%

Insider and Institutional Ownership

91.8% of CyberArk Software shares are owned by institutional investors. Comparatively, 46.5% of Zscaler shares are owned by institutional investors. 1.4% of CyberArk Software shares are owned by company insiders. Comparatively, 18.1% of Zscaler shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CyberArk Software and Zscaler, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberArk Software	0	17	14	0	2.45
Zscaler	0	7	28	1	2.83

CyberArk Software presently has a consensus target price of $435.1071, suggesting a potential upside of 2.66%. Zscaler has a consensus target price of $296.8235, suggesting a potential upside of 7.95%. Given Zscaler’s stronger consensus rating and higher possible upside, analysts clearly believe Zscaler is more favorable than CyberArk Software.

Earnings and Valuation

This table compares CyberArk Software and Zscaler”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberArk Software	$1.20 billion	17.46	-$93.46 million	($3.37)	-125.77
Zscaler	$2.17 billion	19.75	-$57.71 million	($0.26)	-1,057.58

Zscaler has higher revenue and earnings than CyberArk Software. Zscaler is trading at a lower price-to-earnings ratio than CyberArk Software, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

CyberArk Software has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Zscaler has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Summary

Zscaler beats CyberArk Software on 11 of the 15 factors compared between the two stocks.

About CyberArk Software

CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sells software-based identity security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager, which offers risk-based credential security and session; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide secure access to third-party vendors; Dynamic Privileged Access, a SaaS solution that provides just-in-time access to Linux Virtual Machines; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Secure Desktop, a solution that protects access to endpoints. The company also provides workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure web sessions, workforce password management, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; Conjur Enterprise and Conjur Cloud, which offers a secrets management solution for specific requirements; Secrets Hub, a centralized visibility and management platform; Cloud Security solutions; Identity Management solutions, including lifecycle management, identity flows, identity compliance, and directory services; and Secure Browser. The company serves financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies. The company was incorporated in 1996 and is headquartered in Petah Tikva, Israel.

About Zscaler

Zscaler, Inc. operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also provides Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. In addition, the company offers Posture Control solutions comprising Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and PaaS to reduce risk and ensure compliance with industry and organizational benchmarks; Cloud Infrastructure Entitlement Management that detects and remediates excessive or unused cloud permissions and enforces least privileged access without disrupting productivity; Infrastructure as Code (IaC), which analyzes IaC templates to identify misconfigurations and other security issues prior to deployment to cloud infrastructure; and Vulnerability Scanning and Data Loss Prevention solutions. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. The company serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.