Zscaler (NASDAQ:ZS) vs. Thoughtworks (NASDAQ:TWKS) Head-To-Head Analysis

Zscaler (NASDAQ:ZSGet Rating) and Thoughtworks (NASDAQ:TWKSGet Rating) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

43.4% of Zscaler shares are held by institutional investors. Comparatively, 17.0% of Thoughtworks shares are held by institutional investors. 20.3% of Zscaler shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Zscaler and Thoughtworks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zscaler 1 6 23 0 2.73
Thoughtworks 0 3 9 0 2.75

Zscaler currently has a consensus target price of $241.53, indicating a potential upside of 47.80%. Thoughtworks has a consensus target price of $26.42, indicating a potential upside of 58.75%. Given Thoughtworks’ stronger consensus rating and higher possible upside, analysts plainly believe Thoughtworks is more favorable than Zscaler.

Profitability

This table compares Zscaler and Thoughtworks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zscaler -38.52% -58.37% -13.12%
Thoughtworks -8.85% -22.60% -6.16%

Valuation & Earnings

This table compares Zscaler and Thoughtworks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zscaler $673.10 million 34.44 -$262.03 million ($2.67) -61.21
Thoughtworks $1.07 billion 4.83 -$23.62 million N/A N/A

Thoughtworks has higher revenue and earnings than Zscaler.

Summary

Thoughtworks beats Zscaler on 7 of the 11 factors compared between the two stocks.

About Zscaler

(Get Rating)

Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device 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 offers 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 provides workload segmentation solutions comprising Zscaler Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and platform as a service to reduce risk and ensure compliance with industry and organizational benchmarks; and Zscaler Cloud Workload Segmentation, which is designed to secure application-to-application communications inside public clouds and data centers to stop lateral threat movement, as well as prevents application compromise and reduces the risk of data breaches. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. It 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 Thoughtworks

(Get Rating)

Thoughtworks Holding, Inc. provides technology consultancy services in North America, the Asia Pacific, Europe, and Latin America. The company's consultancy services integrate strategy, design, and software engineering to enable enterprises and technology disruptors to thrive as modern digital businesses. It offers enterprise modernization, platforms, and cloud services, including modernization strategy and execution, digital platform strategy and engineering organization transformation, cloud modernization, cloud-native application support and evolution, and platform assessment and remediation; and customer experience, product, and design services comprising idea to market, customer experience strategy, product management transformation, and product design and delivery. The company also provides data and artificial intelligence services, such as data strategy, intelligent products, data platforms and data mesh, continuous delivery for machine learning, and data governance; and digital transformation and operations services, which include delivery transformation, digital fluency, organization transformation, value-driven portfolio management, technology strategy, executive advisory, and digital foundations training. It serves its clients in various industry verticals, including technology and business services; energy, public, and health services; retail and consumer; financial services and insurance; and automotive, travel, and transportation. The company was founded in 1993 and is headquartered in Chicago, Illinois.

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