Zscaler (NASDAQ:ZS – Get Free Report) and SpringBig (NASDAQ:SBIG – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Profitability
This table compares Zscaler and SpringBig’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zscaler | -1.58% | -0.75% | -0.20% |
| SpringBig | -15.10% | N/A | -63.22% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Zscaler and SpringBig, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zscaler | 0 | 11 | 23 | 0 | 2.68 |
| SpringBig | 0 | 0 | 1 | 0 | 3.00 |
Institutional and Insider Ownership
46.5% of Zscaler shares are owned by institutional investors. Comparatively, 30.9% of SpringBig shares are owned by institutional investors. 18.1% of Zscaler shares are owned by insiders. Comparatively, 41.0% of SpringBig shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Zscaler and SpringBig”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zscaler | $2.17 billion | 14.05 | -$57.71 million | ($0.25) | -794.24 |
| SpringBig | $28.37 million | 0.11 | -$10.23 million | ($0.08) | -0.88 |
SpringBig has lower revenue, but higher earnings than Zscaler. Zscaler is trading at a lower price-to-earnings ratio than SpringBig, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Zscaler has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, SpringBig has a beta of 2.88, indicating that its stock price is 188% more volatile than the S&P 500.
Summary
SpringBig beats Zscaler 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 SpringBig
SpringBig Holdings, Inc. develops and operates a software platform that provides marketing and customer engagement services to cannabis dispensaries and brands in the United States and Canada. Its platform offers customer loyalty and marketing automation solutions. The company was founded in 2016 and is headquartered in Boca Raton, Florida.
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