AKAM vs ZS

For growth investors, Zscaler, Inc.

(ZS) is the stronger pick with 23. 3% revenue growth year-over-year, versus 5. 4% for Akamai Technologies, Inc. (AKAM). Akamai Technologies, Inc. (AKAM) offers the better valuation at 38. 0x trailing P/E (17. 0x forward), making it the more compelling value choice. Analysts rate Zscaler, Inc. (ZS) a "Buy" — based on 52 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, Akamai Technologies, Inc.

is actually cheaper at 17. 0x.

Over the past 5 years, Akamai Technologies, Inc.

(AKAM) delivered a total return of +5. 3%, compared to -9. 8% for Zscaler, Inc. (ZS). Over 10 years, the gap is even starker: ZS returned +363. 0% versus AKAM's +132. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Akamai Technologies, Inc.

(AKAM) is the lower-risk stock at 0. 73β versus Zscaler, Inc. 's 0. 98β — meaning ZS is approximately 34% more volatile than AKAM relative to the S&P 500. On balance sheet safety, Zscaler, Inc. (ZS) carries a lower debt/equity ratio of 100% versus 139% for Akamai Technologies, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Zscaler, Inc.

(ZS) is pulling ahead at 23. 3% versus 5. 4% for Akamai Technologies, Inc. (AKAM). On earnings-per-share growth, the picture is similar: Zscaler, Inc. grew EPS 30. 8% year-over-year, compared to -6. 1% for Akamai Technologies, Inc.. Over a 3-year CAGR, ZS leads at 34. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Akamai Technologies, Inc.

(AKAM) is the more profitable company, earning 10. 7% net margin versus -1. 6% for Zscaler, Inc. — meaning it keeps 10. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AKAM leads at 14. 9% versus -4. 8% for ZS. At the gross margin level — before operating expenses — ZS leads at 76. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Akamai Technologies, Inc.

(AKAM) trades at 17. 0x forward P/E versus 38. 1x for Zscaler, Inc. — 21. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ZS: 81. 4% to $277. 18.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Akamai Technologies, Inc.

(AKAM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 73), +132. 7% 10Y return). Both have compounded well over 10 years (AKAM: +132. 7%, ZS: +363. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AKAM is a mid-cap quality compounder stock; ZS is a mid-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.