Zscaler (NASDAQ:ZS – Get Free Report) and BOX (NYSE:BOX – Get Free Report) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Risk & Volatility
Zscaler has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, BOX has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for Zscaler and BOX, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zscaler | 1 | 8 | 36 | 0 | 2.78 |
| BOX | 1 | 4 | 3 | 0 | 2.25 |
Zscaler currently has a consensus target price of $236.65, suggesting a potential upside of 5.44%. BOX has a consensus target price of $37.80, suggesting a potential downside of 14.06%. Given Zscaler’s stronger consensus rating and higher possible upside, equities analysts plainly believe Zscaler is more favorable than BOX.
Earnings & Valuation
This table compares Zscaler and BOX”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zscaler | $3.35 billion | 10.92 | -$63.18 million | ($0.39) | -575.49 |
| BOX | $1.18 billion | 5.13 | $115.38 million | $0.69 | 63.74 |
BOX has lower revenue, but higher earnings than Zscaler. Zscaler is trading at a lower price-to-earnings ratio than BOX, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
46.5% of Zscaler shares are held by institutional investors. Comparatively, 86.7% of BOX shares are held by institutional investors. 17.2% of Zscaler shares are held by insiders. Comparatively, 4.0% of BOX shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Zscaler and BOX’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zscaler | -1.88% | 1.23% | 0.40% |
| BOX | 10.59% | -20.97% | 4.47% |
Summary
Zscaler beats BOX on 8 of the 14 factors compared between the two stocks.
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.
About BOX
Box, Inc. engages in the provision of an enterprise content platform that enables organizations to securely manage enterprise content while allowing easy, secure access and sharing of this content from anywhere, on any device. Its products include cloud content management, IT and admin controls, Box Governance, Box Zones, Box Relay, Box Shuttle, and Box KeySafe. The company was founded by Aaron Levie, Dylan Smith, Jeff Queisser, and Sam Ghods in March 2005 and is headquartered in Redwood City, CA.
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