Head to Head Comparison: Zscaler (NASDAQ:ZS) versus Alpha Technology Group (NASDAQ:ATGL)

Alpha Technology Group (NASDAQ:ATGL) and Zscaler (NASDAQ:ZS) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

46.5% of Zscaler shares are held by institutional investors. 19.2% of Zscaler shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Alpha Technology Group and Zscaler’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpha Technology Group	N/A	N/A	N/A
Zscaler	-3.62%	-5.84%	-1.36%

Analyst Ratings

This is a breakdown of current ratings for Alpha Technology Group and Zscaler, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpha Technology Group	0	0	0	0	N/A
Zscaler	0	9	25	1	2.77

Zscaler has a consensus price target of $217.41, suggesting a potential upside of 34.00%. Given Zscaler’s higher possible upside, analysts clearly believe Zscaler is more favorable than Alpha Technology Group.

Valuation and Earnings

This table compares Alpha Technology Group and Zscaler’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpha Technology Group	$8.69 million	2.93	-$890,000.00	N/A	N/A
Zscaler	$2.03 billion	12.08	-$202.34 million	($0.51)	-318.14

Alpha Technology Group has higher earnings, but lower revenue than Zscaler.

Summary

Zscaler beats Alpha Technology Group on 7 of the 11 factors compared between the two stocks.

About Alpha Technology Group

Alpha Technology Group Limited, through its subsidiaries, provides cloud-based information technology services in Hong Kong. The company primarily offers cloud-based and customized customer relationship management and enterprise resource planning systems; web and mobile application development services; artificial intelligence powered optical character recognition services; and technological support and maintenance, and other services, such as maintaining and enhancing services for systems. It serves customers from various industries, including consulting, real estate, architectural design, carpark management, electronic payment services, logistics, investments, retail, textiles, wholesale and distribution, social services, etc. The company was incorporated in 2022 and is based in Kwun Tong, Hong Kong.

About Zscaler

Zscaler, Inc. operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also provides Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. In addition, the company offers Posture Control solutions comprising Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and PaaS to reduce risk and ensure compliance with industry and organizational benchmarks; Cloud Infrastructure Entitlement Management that detects and remediates excessive or unused cloud permissions and enforces least privileged access without disrupting productivity; Infrastructure as Code (IaC), which analyzes IaC templates to identify misconfigurations and other security issues prior to deployment to cloud infrastructure; and Vulnerability Scanning and Data Loss Prevention solutions. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. The company serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.