FSLY vs ZS

For growth investors, Zscaler, Inc.

(ZS) is the stronger pick with 23. 3% revenue growth year-over-year, versus 14. 8% for Fastly, Inc. (FSLY). 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.

Over the past 5 years, Zscaler, Inc.

(ZS) delivered a total return of -9. 8%, compared to -53. 4% for Fastly, Inc. (FSLY). Over 10 years, the gap is even starker: ZS returned +363. 0% versus FSLY's -18. 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), Fastly, Inc.

(FSLY) is the lower-risk stock at 0. 95β versus Zscaler, Inc. 's 0. 98β — meaning ZS is approximately 3% more volatile than FSLY relative to the S&P 500. On balance sheet safety, Fastly, Inc. (FSLY) carries a lower debt/equity ratio of 46% versus 100% for Zscaler, 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 14. 8% for Fastly, Inc. (FSLY). On earnings-per-share growth, the picture is similar: Zscaler, Inc. grew EPS 30. 8% year-over-year, compared to 27. 2% for Fastly, 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.

Zscaler, Inc.

(ZS) is the more profitable company, earning -1. 6% net margin versus -19. 5% for Fastly, Inc. — meaning it keeps -1. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ZS leads at -4. 8% versus -18. 9% for FSLY. 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, Zscaler, Inc.

(ZS) trades at 38. 1x forward P/E versus 73. 1x for Fastly, Inc. — 35. 0x 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, 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 0. 98), +363. 0% 10Y return). Both have compounded well over 10 years (ZS: +363. 0%, FSLY: -18. 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.

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: FSLY is a small-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.