Virtusa (VRTU) versus Zscaler (ZS) Head to Head Analysis

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

Profitability

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

Net Margins Return on Equity Return on Assets
Zscaler N/A N/A N/A
Virtusa 0.92% 4.93% 3.00%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zscaler 0 6 3 1 2.50
Virtusa 0 1 5 1 3.00

Zscaler currently has a consensus target price of $30.60, suggesting a potential upside of 8.90%. Virtusa has a consensus target price of $58.71, suggesting a potential upside of 21.49%. Given Virtusa’s stronger consensus rating and higher possible upside, analysts clearly believe Virtusa is more favorable than Zscaler.

Earnings & Valuation

This table compares Zscaler and Virtusa’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zscaler N/A N/A N/A N/A N/A
Virtusa $858.73 million 1.66 $11.85 million $0.67 72.13

Virtusa has higher revenue and earnings than Zscaler.

Institutional and Insider Ownership

86.7% of Virtusa shares are owned by institutional investors. 6.0% of Virtusa shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Virtusa beats Zscaler on 9 of the 9 factors compared between the two stocks.

About Virtusa

Virtusa Corporation (Virtusa) is an information technology services company. The Company’s services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services. Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients’ core customer-facing processes into one or more core systems. It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development. The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.

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