Comprehensive Stock Comparison
Compare Gen Digital Inc. (GEN) 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 GEN's 3.6% |
| Value | GEN | Lower P/E (8.9x vs 36.8x) |
| Quality / Margins | GEN | 12.8% net margin vs ZS's -2.3% |
| Stability / Safety | GEN | Beta 0.96 vs ZS's 1.27 |
| Dividends | GEN | 2.2% yield; ZS pays no meaningful dividend |
| Momentum (1Y) | GEN | -15.6% vs ZS's -25.1% |
| Efficiency (ROA) | GEN | 3.8% ROA vs ZS's -1.0%, ROIC 12.4% 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
Gen Digital is a consumer cybersecurity company that provides antivirus, identity theft protection, and online privacy solutions through brands like Norton and LifeLock. It generates revenue primarily from subscription services — with consumer cybersecurity subscriptions accounting for over 90% of sales — while also offering some direct-to-consumer hardware products. The company benefits from strong brand recognition in consumer security, cross-selling opportunities across its portfolio, and network effects as its threat intelligence improves with more users.
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
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
GEN leads in 5 of 6 categories — strongest in Financial Metrics and Valuation Metrics.
Financial Metrics (TTM)
GEN is the larger business by revenue, generating $4.7B annually — 1.6x ZS's $3.0B. GEN is the more profitable business, keeping 12.8% of every revenue dollar as net income compared to ZS's -2.3%.
| Metric | GENGen Digital Inc. | ZSZscaler, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $4.7B | $3.0B |
| EBITDAEarnings before interest/tax | $2.2B | -$52M |
| Net IncomeAfter-tax profit | $603M | -$68M |
| Free Cash FlowCash after capex | $1.5B | $944M |
| Gross MarginGross profit ÷ Revenue | +77.7% | +76.6% |
| Operating MarginEBIT ÷ Revenue | +36.9% | -4.8% |
| Net MarginNet income ÷ Revenue | +12.8% | -2.3% |
| FCF MarginFCF ÷ Revenue | +32.1% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +25.8% | +25.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +19.2% | -3.2% |
Valuation Metrics
| Metric | GENGen Digital Inc. | ZSZscaler, Inc. |
|---|---|---|
| Market CapShares × price | $13.9B | $23.6B |
| Enterprise ValueMkt cap + debt − cash | $21.2B | $23.0B |
| Trailing P/EPrice ÷ TTM EPS | 21.91x | -544.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 8.86x | 36.83x |
| PEG RatioP/E ÷ EPS growth rate | 8.01x | — |
| EV / EBITDAEnterprise value multiple | 10.47x | — |
| Price / SalesMarket cap ÷ Revenue | 3.54x | 8.83x |
| Price / BookPrice ÷ Book value/share | 6.21x | 12.61x |
| Price / FCFMarket cap ÷ FCF | 11.55x | 32.48x |
Profitability & Efficiency
GEN delivers a 25.9% return on equity — every $100 of shareholder capital generates $26 in annual profit, vs $-3 for ZS. ZS carries lower financial leverage with a 1.00x debt-to-equity ratio, signaling a more conservative balance sheet compared to GEN's 3.66x. On the Piotroski fundamental quality scale (0–9), GEN scores 8/9 vs ZS's 4/9, reflecting strong financial health.
| Metric | GENGen Digital Inc. | ZSZscaler, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +25.9% | -3.1% |
| ROA (TTM)Return on assets | +3.8% | -1.0% |
| ROICReturn on invested capital | +12.4% | -8.4% |
| ROCEReturn on capital employed | +12.5% | -4.6% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 4 |
| Debt / EquityFinancial leverage | 3.66x | 1.00x |
| Net DebtTotal debt minus cash | $7.3B | -$592M |
| Cash & Equiv.Liquid assets | $1.0B | $2.4B |
| Total DebtShort + long-term debt | $8.3B | $1.8B |
| Interest CoverageEBIT ÷ Interest expense | 2.97x | 8.97x |
Total Returns (with DRIP)
A $10,000 investment in GEN five years ago would be worth $12,752 today (with dividends reinvested), compared to $6,994 for ZS. Over the past 12 months, GEN leads with a -15.6% total return vs ZS's -25.1%. The 3-year compound annual growth rate (CAGR) favors GEN at 7.3% vs ZS's 3.9% — a key indicator of consistent wealth creation.
| Metric | GENGen Digital Inc. | ZSZscaler, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -12.9% | -33.4% |
| 1-Year ReturnPast 12 months | -15.6% | -25.1% |
| 3-Year ReturnCumulative with dividends | +23.4% | +12.1% |
| 5-Year ReturnCumulative with dividends | +27.5% | -30.1% |
| 10-Year ReturnCumulative with dividends | +122.0% | +345.4% |
| CAGR (3Y)Annualised 3-year return | +7.3% | +3.9% |
Risk & Volatility
GEN is the less volatile stock with a 0.96 beta — it tends to amplify market swings less than ZS's 1.27 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GEN currently trades 70.0% from its 52-week high vs ZS's 43.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | GENGen Digital Inc. | ZSZscaler, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.96x | 1.27x |
| 52-Week HighHighest price in past year | $32.22 | $336.99 |
| 52-Week LowLowest price in past year | $21.33 | $140.56 |
| % of 52W HighCurrent price vs 52-week peak | +70.0% | +43.6% |
| RSI (14)Momentum oscillator 0–100 | 42.3 | 41.7 |
| Avg Volume (50D)Average daily shares traded | 4.7M | 1.7M |
Analyst Outlook
Wall Street rates GEN as "Buy" and ZS as "Buy". Consensus price targets imply 96.5% upside for ZS (target: $289) vs 40.3% for GEN (target: $32). GEN is the only dividend payer here at 2.22% yield — a key consideration for income-focused portfolios.
| Metric | GENGen Digital Inc. | ZSZscaler, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $31.67 | $288.85 |
| # AnalystsCovering analysts | 21 | 52 |
| Dividend YieldAnnual dividend ÷ price | +2.2% | — |
| Dividend StreakConsecutive years of raises | 0 | — |
| Dividend / ShareAnnual DPS | $0.50 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +2.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Gen Digital Inc. (GEN) | 100 | 119.37 | +19.4% |
| Zscaler, Inc. (ZS) | 100 | 380.09 | +280.1% |
Gen Digital Inc. (GEN) returned +28% over 5 years vs Zscaler, Inc. (ZS)'s -30%. A $10,000 investment in GEN 5 years ago would be worth $12,752 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Gen Digital Inc. (GEN) | $3.6B | $3.9B | +9.3% |
| Zscaler, Inc. (ZS) | $80M | $2.7B | +3227.9% |
Gen Digital Inc.'s revenue grew from $3.6B (2016) to $3.9B (2025) — a 1.0% CAGR. 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 |
|---|---|---|---|
| Gen Digital Inc. (GEN) | 69.1% | 16.3% | -76.4% |
| Zscaler, Inc. (ZS) | -34.2% | -1.6% | +95.5% |
Gen Digital Inc.'s net margin went from 69% (2016) to 16% (2025). Zscaler, Inc.'s net margin went from -34% (2016) to -2% (2025).
Chart 4P/E Ratio History — 7 Years
| Stock | 2018 | 2025 | Change |
|---|---|---|---|
| Gen Digital Inc. (GEN) | 10.9 | 26.4 | +142.2% |
Gen Digital Inc. has traded in a 11x–29x P/E range over 7 years; current trailing P/E is ~22x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Gen Digital Inc. (GEN) | 3.71 | 1.03 | -72.2% |
| Zscaler, Inc. (ZS) | -0.98 | -0.27 | +72.4% |
Gen Digital Inc.'s EPS grew from $3.71 (2016) to $1.03 (2025) — a -13% CAGR. Zscaler, Inc.'s EPS grew from $-0.98 (2016) to $-0.27 (2025).
Chart 6Free Cash Flow — 5 Years
Gen Digital Inc. generated $1B FCF in 2025 (+72% vs 2021). Zscaler, Inc. generated $727M FCF in 2025 (+406% vs 2021).
GEN vs ZS: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is GEN or ZS a better buy right now?
Gen Digital Inc. (GEN) offers the better valuation at 21.9x trailing P/E (8.9x forward), making it the more compelling value choice. Analysts rate Gen Digital Inc. (GEN) a "Buy" — based on 21 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 has the better valuation — GEN or ZS?
On forward P/E, Gen Digital Inc. is actually cheaper at 8.9x.
03Which is the better long-term investment — GEN or ZS?
Over the past 5 years, Gen Digital Inc. (GEN) delivered a total return of +27.5%, compared to -30.1% for Zscaler, Inc. (ZS). A $10,000 investment in GEN five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ZS returned +345.4% versus GEN's +122.0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — GEN or ZS?
By beta (market sensitivity over 5 years), Gen Digital Inc. (GEN) is the lower-risk stock at 0.96β versus Zscaler, Inc.'s 1.27β — meaning ZS is approximately 32% more volatile than GEN relative to the S&P 500. On balance sheet safety, Zscaler, Inc. (ZS) carries a lower debt/equity ratio of 100% versus 4% for Gen Digital Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — GEN or ZS?
Gen Digital Inc. (GEN) is the more profitable company, earning 16.3% net margin versus -1.6% for Zscaler, Inc. — meaning it keeps 16.3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GEN leads at 40.9% versus -4.8% for ZS. At the gross margin level — before operating expenses — GEN leads at 80.3%, 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.
06Is GEN or ZS more undervalued right now?
On forward earnings alone, Gen Digital Inc. (GEN) trades at 8.9x forward P/E versus 36.8x for Zscaler, Inc. — 28.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ZS: 96.5% to $288.85.
07Which pays a better dividend — GEN or ZS?
In this comparison, GEN (2.2% yield) pays a dividend. ZS does not pay a meaningful dividend and should not be held primarily for income.
08Is GEN or ZS better for a retirement portfolio?
For long-horizon retirement investors, Gen Digital Inc. (GEN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.96), 2.2% yield, +122.0% 10Y return). Both have compounded well over 10 years (GEN: +122.0%, ZS: +345.4%), 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.
09What are the main differences between GEN 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. GEN pays a dividend while ZS does not, making them suitable for different income and tax situations. 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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