MicroAlgo (NASDAQ:MLGO) and Zscaler (NASDAQ:ZS) Head-To-Head Analysis

MicroAlgo (NASDAQ:MLGO) and Zscaler (NASDAQ:ZS) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for MicroAlgo and Zscaler, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MicroAlgo	0	0	0	0	N/A
Zscaler	0	9	24	1	2.76

Zscaler has a consensus price target of $218.39, suggesting a potential upside of 27.14%. Given Zscaler’s higher probable upside, analysts clearly believe Zscaler is more favorable than MicroAlgo.

Risk & Volatility

MicroAlgo has a beta of 3, suggesting that its share price is 200% more volatile than the S&P 500. Comparatively, Zscaler has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MicroAlgo	N/A	N/A	N/A
Zscaler	-2.66%	-3.46%	-0.87%

Insider & Institutional Ownership

1.1% of MicroAlgo shares are held by institutional investors. Comparatively, 46.5% of Zscaler shares are held by institutional investors. 22.7% of MicroAlgo shares are held by insiders. Comparatively, 19.2% of Zscaler shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares MicroAlgo and Zscaler”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MicroAlgo	$81.89 million	0.01	-$37.87 million	N/A	N/A
Zscaler	$2.17 billion	11.98	-$57.71 million	($0.51)	-336.80

MicroAlgo has higher earnings, but lower revenue than Zscaler.

About MicroAlgo

MicroAlgo Inc. develops and applies central processing algorithm solutions to customers in internet advertisement, gaming, and intelligent chip industries in the People’s Republic of China, Hong Kong, and internationally. The company operates through two segments, Central Processing Algorithm Services, and Intelligent Chips and Services. It offers services that includes algorithm optimization, accelerating computing power without the need for hardware upgrades, data processing, and data intelligence services. The company also provides advertising distribution, mobile game publishing and licensing, software services, and comprehensive solutions for enterprise customers, as well as intelligent chips solutions for the semiconductor sector. In addition, it engages in the resale of intelligent chips and accessories; and provision of software development. MicroAlgo Inc. is headquartered in Shenzhen, the People’s Republic of China. MicroAlgo Inc. is a subsidiary of WiMi Hologram Cloud Inc.

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.