Comprehensive Stock Comparison
Compare NetScout Systems, Inc. (NTCT) 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 NTCT's -0.8% |
| Value | NTCT | Lower P/E (12.1x vs 36.8x) |
| Quality / Margins | NTCT | 11.1% net margin vs ZS's -2.3% |
| Stability / Safety | NTCT | Beta 0.90 vs ZS's 1.27, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | NTCT | +29.9% vs ZS's -25.1% |
| Efficiency (ROA) | NTCT | 4.1% ROA vs ZS's -1.0%, ROIC -19.7% 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
NetScout Systems provides service assurance and cybersecurity solutions that help enterprises and service providers monitor, troubleshoot, and protect their digital services and networks. The company generates revenue primarily through software licenses and maintenance services—roughly 70% from software and 30% from hardware—with its nGeniusONE platform being the flagship offering. Its key competitive advantage lies in deep packet inspection technology and specialized analytics that provide comprehensive visibility into network performance and security threats.
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
NTCT leads in 4 of 6 categories — strongest in Financial Metrics and Valuation Metrics. 1 category is tied.
Financial Metrics (TTM)
ZS is the larger business by revenue, generating $3.0B annually — 3.5x NTCT's $861M. NTCT is the more profitable business, keeping 11.1% of every revenue dollar as net income compared to ZS's -2.3%. On growth, ZS holds the edge at +25.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NTCTNetScout Systems,… | ZSZscaler, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $861M | $3.0B |
| EBITDAEarnings before interest/tax | $168M | -$52M |
| Net IncomeAfter-tax profit | $96M | -$68M |
| Free Cash FlowCash after capex | $275M | $944M |
| Gross MarginGross profit ÷ Revenue | +79.2% | +76.6% |
| Operating MarginEBIT ÷ Revenue | +12.8% | -4.8% |
| Net MarginNet income ÷ Revenue | +11.1% | -2.3% |
| FCF MarginFCF ÷ Revenue | +32.0% | +31.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.5% | +25.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +11.9% | -3.2% |
Valuation Metrics
| Metric | NTCTNetScout Systems,… | ZSZscaler, Inc. |
|---|---|---|
| Market CapShares × price | $4.0B | $23.6B |
| Enterprise ValueMkt cap + debt − cash | $3.6B | $23.0B |
| Trailing P/EPrice ÷ TTM EPS | -5.77x | -544.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.10x | 36.83x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | — |
| Price / SalesMarket cap ÷ Revenue | 4.84x | 8.83x |
| Price / BookPrice ÷ Book value/share | 1.36x | 12.61x |
| Price / FCFMarket cap ÷ FCF | 18.88x | 32.48x |
Profitability & Efficiency
NTCT delivers a 5.8% return on equity — every $100 of shareholder capital generates $6 in annual profit, vs $-3 for ZS. NTCT carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to ZS's 1.00x. On the Piotroski fundamental quality scale (0–9), NTCT scores 6/9 vs ZS's 4/9, reflecting solid financial health.
| Metric | NTCTNetScout Systems,… | ZSZscaler, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +5.8% | -3.1% |
| ROA (TTM)Return on assets | +4.1% | -1.0% |
| ROICReturn on invested capital | -19.7% | -8.4% |
| ROCEReturn on capital employed | -18.5% | -4.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.03x | 1.00x |
| Net DebtTotal debt minus cash | -$414M | -$592M |
| Cash & Equiv.Liquid assets | $457M | $2.4B |
| Total DebtShort + long-term debt | $44M | $1.8B |
| Interest CoverageEBIT ÷ Interest expense | 101.00x | 8.97x |
Total Returns (with DRIP)
A $10,000 investment in NTCT five years ago would be worth $10,059 today (with dividends reinvested), compared to $6,994 for ZS. Over the past 12 months, NTCT leads with a +29.9% total return vs ZS's -25.1%. The 3-year compound annual growth rate (CAGR) favors ZS at 3.9% vs NTCT's 0.9% — a key indicator of consistent wealth creation.
| Metric | NTCTNetScout Systems,… | ZSZscaler, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +8.8% | -33.4% |
| 1-Year ReturnPast 12 months | +29.9% | -25.1% |
| 3-Year ReturnCumulative with dividends | +2.7% | +12.1% |
| 5-Year ReturnCumulative with dividends | +0.6% | -30.1% |
| 10-Year ReturnCumulative with dividends | +41.3% | +345.4% |
| CAGR (3Y)Annualised 3-year return | +0.9% | +3.9% |
Risk & Volatility
NTCT is the less volatile stock with a 0.90 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. NTCT currently trades 95.2% from its 52-week high vs ZS's 43.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | NTCTNetScout Systems,… | ZSZscaler, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.90x | 1.27x |
| 52-Week HighHighest price in past year | $30.67 | $336.99 |
| 52-Week LowLowest price in past year | $18.12 | $140.56 |
| % of 52W HighCurrent price vs 52-week peak | +95.2% | +43.6% |
| RSI (14)Momentum oscillator 0–100 | 57.0 | 41.7 |
| Avg Volume (50D)Average daily shares traded | 383K | 1.7M |
Analyst Outlook
Wall Street rates NTCT as "Hold" and ZS as "Buy". Consensus price targets imply 96.5% upside for ZS (target: $289) vs -0.7% for NTCT (target: $29).
| Metric | NTCTNetScout Systems,… | ZSZscaler, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $29.00 | $288.85 |
| # AnalystsCovering analysts | 21 | 52 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.6% | 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 |
|---|---|---|---|
| NetScout Systems, I… (NTCT) | 100 | 109.74 | +9.7% |
| Zscaler, Inc. (ZS) | 100 | 380.09 | +280.1% |
NetScout Systems, I… (NTCT) returned +1% over 5 years vs Zscaler, Inc. (ZS)'s -30%. A $10,000 investment in NTCT 5 years ago would be worth $10,059 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| NetScout Systems, I… (NTCT) | $955M | $823M | -13.9% |
| Zscaler, Inc. (ZS) | $80M | $2.7B | +3227.9% |
NetScout Systems, Inc.'s revenue grew from $955M (2016) to $823M (2025) — a -1.6% 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 |
|---|---|---|---|
| NetScout Systems, I… (NTCT) | -3.0% | -44.6% | -1402.1% |
| Zscaler, Inc. (ZS) | -34.2% | -1.6% | +95.5% |
NetScout Systems, Inc.'s net margin went from -3% (2016) to -45% (2025). Zscaler, Inc.'s net margin went from -34% (2016) to -2% (2025).
Chart 4P/E Ratio History — 5 Years
| Stock | 2017 | 2023 | Change |
|---|---|---|---|
| NetScout Systems, I… (NTCT) | 84.6 | 26.8 | -68.3% |
NetScout Systems, Inc. has traded in a 26x–127x P/E range over 5 years; current trailing P/E is ~-6x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| NetScout Systems, I… (NTCT) | -0.35 | -5.06 | -1345.7% |
| Zscaler, Inc. (ZS) | -0.98 | -0.27 | +72.4% |
NetScout Systems, Inc.'s EPS grew from $-0.35 (2016) to $-5.06 (2025). Zscaler, Inc.'s EPS grew from $-0.98 (2016) to $-0.27 (2025).
Chart 6Free Cash Flow — 5 Years
NetScout Systems, Inc. generated $211M FCF in 2025 (+7% vs 2021). Zscaler, Inc. generated $727M FCF in 2025 (+406% vs 2021).
NTCT vs ZS: Frequently Asked Questions
8 questions · data-driven answers · updated daily
01Is NTCT or ZS a better buy right now?
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 — NTCT or ZS?
Over the past 5 years, NetScout Systems, Inc. (NTCT) delivered a total return of +0.6%, compared to -30.1% for Zscaler, Inc. (ZS). A $10,000 investment in NTCT five years ago would be worth approximately $10K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ZS returned +345.4% versus NTCT's +41.3%. 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 — NTCT or ZS?
By beta (market sensitivity over 5 years), NetScout Systems, Inc. (NTCT) is the lower-risk stock at 0.90β versus Zscaler, Inc.'s 1.27β — meaning ZS is approximately 41% more volatile than NTCT relative to the S&P 500. On balance sheet safety, NetScout Systems, Inc. (NTCT) carries a lower debt/equity ratio of 3% versus 100% for Zscaler, Inc. — giving it more financial flexibility in a downturn.
04Which has better profit margins — NTCT or ZS?
Zscaler, Inc. (ZS) is the more profitable company, earning -1.6% net margin versus -44.6% for NetScout Systems, 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 -44.7% for NTCT. At the gross margin level — before operating expenses — NTCT leads at 78.3%, 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.
05Is NTCT or ZS more undervalued right now?
On forward earnings alone, NetScout Systems, Inc. (NTCT) trades at 12.1x forward P/E versus 36.8x for Zscaler, Inc. — 24.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ZS: 96.5% to $288.85.
06Which pays a better dividend — NTCT 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.
07Is NTCT or ZS better for a retirement portfolio?
For long-horizon retirement investors, NetScout Systems, Inc. (NTCT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.90)). Both have compounded well over 10 years (NTCT: +41.3%, 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.
08What are the main differences between NTCT 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. 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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