Comprehensive Stock Comparison
Compare Alarum Technologies Ltd. (ALAR) vs Zscaler, Inc. (ZS) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | ZS | 23.3% revenue growth vs ALAR's 20.9% |
| Value | ALAR | Lower P/E (7.7x vs 36.8x) |
| Quality / Margins | ALAR | 3.3% net margin vs ZS's -2.3% |
| Stability / Safety | ZS | Beta 1.27 vs ALAR's 1.68 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | ALAR | -0.1% vs ZS's -25.1% |
| Efficiency (ROA) | ALAR | 2.7% ROA vs ZS's -1.0%, ROIC 59.0% vs -8.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Alarum Technologies provides cybersecurity and privacy solutions for both consumers and enterprises. It generates revenue through software subscriptions for its threat protection tools — including iShield and AdBlocker — and proxy network services, with its residential proxy network being a significant revenue driver. The company's competitive advantage lies in its proprietary proxy network technology and integrated cybersecurity platform that combines consumer privacy tools with enterprise-grade security solutions.
Zscaler is a cloud-native security platform that provides secure internet and private application access without traditional network hardware. It generates revenue primarily through subscription fees for its Zero Trust Exchange platform — with its core Zscaler Internet Access and Zscaler Private Access solutions driving most of its business. The company's key advantage is its massive, globally distributed cloud architecture that processes over 300 billion daily transactions, creating significant scale and data advantages that competitors cannot easily replicate.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
ALAR leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). ZS leads in 1 (Risk & Volatility).
Financial Metrics (TTM)
ZS is the larger business by revenue, generating $3.0B annually — 82.6x ALAR's $36M. ALAR is the more profitable business, keeping 3.3% of every revenue dollar as net income compared to ZS's -2.3%. On growth, ALAR holds the edge at +80.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ALARAlarum Technologi… | ZSZscaler, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $36M | $3.0B |
| EBITDAEarnings before interest/tax | $1M | -$52M |
| Net IncomeAfter-tax profit | $1M | -$68M |
| Free Cash FlowCash after capex | $0 | $944M |
| Gross MarginGross profit ÷ Revenue | +62.8% | +76.6% |
| Operating MarginEBIT ÷ Revenue | +1.6% | -4.8% |
| Net MarginNet income ÷ Revenue | +3.3% | -2.3% |
| FCF MarginFCF ÷ Revenue | +27.5% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +80.3% | +25.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -99.0% | -3.2% |
Valuation Metrics
| Metric | ALARAlarum Technologi… | ZSZscaler, Inc. |
|---|---|---|
| Market CapShares × price | $47M | $23.6B |
| Enterprise ValueMkt cap + debt − cash | $34M | $23.0B |
| Trailing P/EPrice ÷ TTM EPS | 7.66x | -544.41x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 36.83x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 4.41x | — |
| Price / SalesMarket cap ÷ Revenue | 1.47x | 8.83x |
| Price / BookPrice ÷ Book value/share | 1.69x | 12.61x |
| Price / FCFMarket cap ÷ FCF | 5.36x | 32.48x |
Profitability & Efficiency
ALAR delivers a 3.8% return on equity — every $100 of shareholder capital generates $4 in annual profit, vs $-3 for ZS. ALAR carries lower financial leverage with a 0.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to ZS's 1.00x. On the Piotroski fundamental quality scale (0–9), ALAR scores 6/9 vs ZS's 4/9, reflecting solid financial health.
| Metric | ALARAlarum Technologi… | ZSZscaler, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +3.8% | -3.1% |
| ROA (TTM)Return on assets | +2.7% | -1.0% |
| ROICReturn on invested capital | +59.0% | -8.4% |
| ROCEReturn on capital employed | +32.8% | -4.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.06x | 1.00x |
| Net DebtTotal debt minus cash | -$13M | -$592M |
| Cash & Equiv.Liquid assets | $15M | $2.4B |
| Total DebtShort + long-term debt | $2M | $1.8B |
| Interest CoverageEBIT ÷ Interest expense | 17.18x | 8.97x |
Total Returns (with DRIP)
A $10,000 investment in ZS five years ago would be worth $6,994 today (with dividends reinvested), compared to $3,427 for ALAR. Over the past 12 months, ALAR leads with a -0.1% total return vs ZS's -25.1%. The 3-year compound annual growth rate (CAGR) favors ALAR at 45.4% vs ZS's 3.9% — a key indicator of consistent wealth creation.
| Metric | ALARAlarum Technologi… | ZSZscaler, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -26.3% | -33.4% |
| 1-Year ReturnPast 12 months | -0.1% | -25.1% |
| 3-Year ReturnCumulative with dividends | +207.1% | +12.1% |
| 5-Year ReturnCumulative with dividends | -65.7% | -30.1% |
| 10-Year ReturnCumulative with dividends | -99.7% | +345.4% |
| CAGR (3Y)Annualised 3-year return | +45.4% | +3.9% |
Risk & Volatility
ZS is the less volatile stock with a 1.27 beta — it tends to amplify market swings less than ALAR's 1.68 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ZS currently trades 43.6% from its 52-week high vs ALAR's 36.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ALARAlarum Technologi… | ZSZscaler, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.68x | 1.27x |
| 52-Week HighHighest price in past year | $18.00 | $336.99 |
| 52-Week LowLowest price in past year | $5.45 | $140.56 |
| % of 52W HighCurrent price vs 52-week peak | +36.2% | +43.6% |
| RSI (14)Momentum oscillator 0–100 | 34.9 | 41.7 |
| Avg Volume (50D)Average daily shares traded | 51K | 1.7M |
Analyst Outlook
| Metric | ALARAlarum Technologi… | ZSZscaler, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $288.85 |
| # AnalystsCovering analysts | — | 52 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 2 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Alarum Technologies… (ALAR) | 100 | 44.91 | -55.1% |
| Zscaler, Inc. (ZS) | 100 | 385.86 | +285.9% |
Zscaler, Inc. (ZS) returned -30% over 5 years vs Alarum Technologies… (ALAR)'s -66%.
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Alarum Technologies… (ALAR) | $845846.00 | $32M | +3680.2% |
| Zscaler, Inc. (ZS) | $80M | $2.7B | +3227.9% |
Zscaler, Inc.'s revenue grew from $80M (2016) to $2.7B (2025) — a 47.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Alarum Technologies… (ALAR) | -10.6% | 18.2% | +271.6% |
| Zscaler, Inc. (ZS) | -34.2% | -1.6% | +95.5% |
Zscaler, Inc.'s net margin went from -34% (2016) to -2% (2025).
Chart 4EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Alarum Technologies… (ALAR) | -6,192 | 0.85 | +100.0% |
| Zscaler, Inc. (ZS) | -0.98 | -0.27 | +72.4% |
Zscaler, Inc.'s EPS grew from $-0.98 (2016) to $-0.27 (2025).
Chart 5Free Cash Flow — 5 Years
Alarum Technologies Ltd. generated $9M FCF in 2024 (+194% vs 2021). Zscaler, Inc. generated $727M FCF in 2025 (+406% vs 2021).
ALAR vs ZS: Frequently Asked Questions
7 questions · data-driven answers · updated daily
01Is ALAR or ZS a better buy right now?
Alarum Technologies Ltd. (ALAR) offers the better valuation at 7.7x trailing P/E, 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.
02Which is the better long-term investment — ALAR or ZS?
Over the past 5 years, Zscaler, Inc. (ZS) delivered a total return of -30.1%, compared to -65.7% for Alarum Technologies Ltd. (ALAR). A $10,000 investment in ZS five years ago would be worth approximately $7K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ZS returned +345.4% versus ALAR's -99.7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — ALAR or ZS?
By beta (market sensitivity over 5 years), Zscaler, Inc. (ZS) is the lower-risk stock at 1.27β versus Alarum Technologies Ltd.'s 1.68β — meaning ALAR is approximately 32% more volatile than ZS relative to the S&P 500. On balance sheet safety, Alarum Technologies Ltd. (ALAR) carries a lower debt/equity ratio of 6% versus 100% for Zscaler, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — ALAR or ZS?
Alarum Technologies Ltd. (ALAR) is the more profitable company, earning 18.2% net margin versus -1.6% for Zscaler, Inc. — meaning it keeps 18.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALAR leads at 21.1% 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.
05Which pays a better dividend — ALAR or ZS?
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.
06Is ALAR or ZS better for a retirement portfolio?
For long-horizon retirement investors, Zscaler, Inc. (ZS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.27), +345.4% 10Y return). Alarum Technologies Ltd. (ALAR) carries a higher beta of 1.68 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ZS: +345.4%, ALAR: -99.7%), 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.
07What are the main differences between ALAR and ZS?
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: ALAR is a small-cap deep-value stock; ZS is a mid-cap quality compounder 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.
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