Home > Comparison > Technology > ZS vs CPAY
The strategic rivalry between Zscaler, Inc. and Corpay, Inc. shapes the evolution of the technology sector’s software infrastructure space. Zscaler operates as a cloud security innovator, focusing on secure access and workload segmentation. Corpay, by contrast, specializes in corporate payments and expense management, supporting diverse business needs. This analysis compares their distinct operational models to identify which company presents a superior risk-adjusted opportunity for a diversified portfolio in 2026.
Table of contents
Companies Overview
Zscaler and Corpay stand as pivotal players revolutionizing infrastructure software and payment solutions respectively.
Zscaler, Inc.: Cloud Security Innovator
Zscaler dominates the cloud security sector by offering a comprehensive platform that secures user access to SaaS applications and private data centers worldwide. Its revenue hinges on subscription-based services like Zscaler Internet Access and Private Access. In 2026, Zscaler sharpens focus on enhancing digital experience metrics and workload segmentation to combat evolving cyber threats.
Corpay, Inc.: Global Payment Facilitator
Corpay leads in payment solutions, managing vehicle, lodging, and corporate expenses across multiple continents. It generates revenue primarily through transaction fees and corporate payment automation tools. In 2026, Corpay prioritizes expanding cross-border payment capabilities and virtual card solutions to streamline business travel and expense management globally.
Strategic Collision: Similarities & Divergences
Both companies emphasize infrastructure software but diverge in business philosophy: Zscaler builds a secure, cloud-based ecosystem, whereas Corpay operates an open, transaction-driven network. Their competitive battleground lies in enterprise digital transformation—Zscaler securing data flows, Corpay optimizing financial workflows. This yields distinct investment profiles; one bets on cybersecurity growth, the other on payment innovation and scale.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Zscaler, Inc. (ZS) | Corpay, Inc. (CPAY) |
|---|---|---|
| Revenue | 2.67B | 4.53B |
| Cost of Revenue | 618M | 1.36B |
| Operating Expenses | 2.18B | 1.21B |
| Gross Profit | 2.05B | 3.17B |
| EBITDA | 112M | 2.34B |
| EBIT | -8.77M | 1.95B |
| Interest Expense | 9.52M | 404M |
| Net Income | -41.5M | 1.07B |
| EPS | -0.27 | 15.25 |
| Fiscal Year | 2025 | 2025 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company runs the more efficient and profitable engine in today’s competitive landscape.
Zscaler, Inc. Analysis
Zscaler’s revenue surged from 673M in 2021 to 2.67B in 2025, nearly quadrupling. Despite strong gross margins near 77%, it remains unprofitable with a net loss of 41M in 2025. Operating losses narrowed significantly, reflecting improving efficiency and momentum, yet it still struggles to convert growth into positive net income.
Corpay, Inc. Analysis
Corpay’s revenue grew steadily from 2.83B in 2021 to 4.53B in 2025, with a robust gross margin close to 70%. It delivered strong profitability, posting a net income of 1.07B in 2025 and maintaining an impressive EBIT margin above 43%. Corpay sustains solid operational leverage and consistent earnings, though net margin declined slightly year-over-year.
Growth Potential vs. Profitability Power
Zscaler exhibits remarkable revenue acceleration and margin expansion but remains unprofitable, signaling growth-stage challenges. Corpay displays stable, high-margin profitability and solid earnings growth, despite slower top-line expansion. For investors prioritizing immediate profits, Corpay’s profile offers clearer returns, while Zscaler appeals to those betting on rapid scale and future margin improvement.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency of the companies compared below:
| Ratios | Zscaler, Inc. (ZS) | Corpay, Inc. (CPAY) |
|---|---|---|
| ROE | -2.31% | 27.55% |
| ROIC | -3.18% | 8.78% |
| P/E | -1063 | 19.73 |
| P/B | 24.51 | 5.43 |
| Current Ratio | 2.01 | 0.98 |
| Quick Ratio | 2.01 | 0.98 |
| D/E | 1.00 | 2.58 |
| Debt-to-Assets | 28.0% | 37.9% |
| Interest Coverage | -13.49 | 4.83 |
| Asset Turnover | 0.42 | 0.17 |
| Fixed Asset Turnover | 4.22 | 9.59 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0 | 0 |
| Fiscal Year | 2025 | 2025 |
Efficiency & Valuation Duel: The Vital Signs
Ratios act as the company’s DNA, revealing hidden risks and operational excellence that guide investors’ understanding beyond surface-level metrics.
Zscaler, Inc.
Zscaler’s profitability ratios, including a negative ROE of -2.31% and unfavorable net margins, signal operational challenges. The stock trades at a peculiar negative P/E, suggesting accounting anomalies or losses. Zscaler maintains a strong current ratio of 2.01, showing liquidity strength, but lacks dividends, focusing instead on reinvestment in R&D, evident in its high expense ratios.
Corpay, Inc.
Corpay delivers robust profitability with a 27.55% ROE and a healthy 23.62% net margin, supporting operational efficiency. Its P/E stands at 19.73, reflecting fair valuation relative to earnings. Despite a weaker current ratio under 1, indicating liquidity concerns, Corpay generates free cash flow but does not pay dividends, likely redirecting capital to growth initiatives.
Valuation Discipline vs. Profitability Strength
Zscaler’s stretched valuation contrasts sharply with its negative returns, while Corpay balances solid profitability with a moderate P/E. Corpay offers a stronger risk-reward profile based on operational results, suiting investors prioritizing earnings quality. Zscaler fits those focused on liquidity and growth reinvestment despite current profitability headwinds.
Which one offers the Superior Shareholder Reward?
I compare Zscaler, Inc. (ZS) and Corpay, Inc. (CPAY) by their distribution strategies, dividend yields, payout ratios, and buyback intensity. Neither pays dividends, so I focus on free cash flow (FCF) and buybacks. ZS generates negative net income and zero dividends, relying on reinvestment. CPAY posts strong net margins (~24%) and significant free cash flow (18.5/share in 2025), yet also pays no dividends. CPAY’s buyback data is not explicit, but its robust FCF and operating margins support potential share repurchases. ZS’s free cash flow coverage is solid (~75%), but persistent losses and high leverage raise doubts about distribution sustainability. CPAY’s combination of strong profitability, better cash flow, and manageable leverage positions it as the superior total return candidate in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Zscaler, Inc. and Corpay, Inc., highlighting their distinct financial strengths and weaknesses:
Corpay, Inc. shows a more balanced and robust profile with top scores in DCF (5) and ROE (5), indicating efficient capital allocation and profitability. Zscaler, Inc. relies mainly on a decent DCF score (4) but scores very low across ROE, ROA, and valuation metrics, signaling operational inefficiencies and potential overvaluation. Corpay’s moderate debt-to-equity score (1) echoes a cautious leverage approach, similar to Zscaler, but its stronger asset returns suggest better resilience.
Bankruptcy Risk: Solvency Showdown
Corpay’s Altman Z-Score sits at 1.59, placing it in the distress zone, while Zscaler scores a solid 4.07 in the safe zone, implying a significantly stronger solvency position and lower bankruptcy risk in this cycle:
Financial Health: Quality of Operations
Zscaler’s Piotroski F-Score of 3 signals very weak financial health and internal red flags. Corpay’s score of 5 is average but notably better, reflecting more stable operations and less financial distress:
How are the two companies positioned?
This section dissects the operational DNA of Zscaler and Corpay by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats and identify which model offers a more resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This comparison dissects how Zscaler and Corpay diversify their income streams and where their primary sector bets lie:
Zscaler relies solely on its single reportable segment generating $2.67B, showing a focused cybersecurity play. Corpay, with $2B in Payments, $1.22B in Corporate Payments, and $489M in Lodging, presents a more diversified revenue base. Corpay’s spread reduces concentration risk and signals strategic bets across financial services and hospitality, while Zscaler’s concentration anchors it deeply in cloud security infrastructure.
Strengths and Weaknesses Comparison
This table compares the strengths and weaknesses of Zscaler, Inc. and Corpay, Inc.:
Zscaler Strengths
- Strong current and quick ratios at 2.01 indicate solid liquidity
- Moderate debt-to-assets ratio at 28% supports financial stability
- Favorable fixed asset turnover of 4.22 shows efficient asset use
- Broad US and growing EMEA and Asia-Pacific presence
Corpay Strengths
- High net margin of 24% and ROE of 28% reflect robust profitability
- Favorable WACC at 6.26% signifies cost-efficient capital
- Strong fixed asset turnover at 9.59 demonstrates asset efficiency
- Diversified revenues across Corporate Payments, Lodging, and Payments
- Extensive US, UK, and Brazil markets support global footprint
Zscaler Weaknesses
- Negative net margin (-1.55%), ROE (-2.31%), and ROIC (-3.18%) indicate profitability challenges
- Unfavorable interest coverage (-0.92) risks debt servicing
- High PB ratio at 24.51 suggests overvaluation concerns
- Low asset turnover at 0.42 points to underutilized assets
- No dividend yield limits income appeal
Corpay Weaknesses
- Current ratio below 1.0 signals liquidity pressure
- High debt-to-equity at 2.58 raises leverage risks
- Unfavorable asset turnover at 0.17 implies inefficient asset use
- No dividend yield reduces shareholder returns
- Moderate unfavorable PB ratio at 5.43 could limit valuation upside
Zscaler shows liquidity strength but struggles with profitability and efficiency, highlighting operational challenges. Corpay delivers strong profitability and diverse revenue but faces liquidity and leverage risks. These contrasts shape their strategic priorities.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only lasting shield protecting long-term profits from relentless competitive erosion:
Zscaler, Inc.: Network Effects Driving Cloud Security Dominance
Zscaler’s moat stems from powerful network effects in cloud security, shown by rising revenue and gross margins near 77%. Despite negative net margins, improving profitability signals moat strengthening through product innovation in 2026.
Corpay, Inc.: Cost Advantage Fuels Payments Efficiency
Corpay leverages cost advantages in corporate payments, delivering a robust 43% EBIT margin and positive net margin near 24%. Its moat contrasts with Zscaler’s, but declining ROIC warns of margin pressure amid expanding global operations in 2026.
Network Effects vs. Cost Advantage: Which Moat Defends Better?
Zscaler’s expanding network effects create a deeper moat despite current losses, while Corpay’s cost advantage builds value but faces profitability headwinds. I see Zscaler better equipped to defend market share long term.
Which stock offers better returns?
Over the past 12 months, Zscaler, Inc. showed a significant price decline, while Corpay, Inc. recorded steady gains with accelerating momentum.
Trend Comparison
Zscaler, Inc. experienced a bearish trend with a -13.76% price decline over the past year, showing deceleration and a high volatility level (47.43 std deviation). Recent months worsened with a -39.15% drop. Corpay, Inc. posted a bullish trend rising 19.8% in the past year, accelerating steadily with moderate volatility (31.25 std deviation). The recent period shows a 22.63% gain and strong buyer dominance. Corpay, Inc. outperformed Zscaler, Inc., delivering the highest market returns and positive momentum over the last 12 months.
Target Prices
Analysts set compelling target price ranges for Zscaler, Inc. and Corpay, Inc., indicating bullish expectations.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Zscaler, Inc. | 260 | 360 | 311.41 |
| Corpay, Inc. | 300 | 390 | 359.33 |
The target consensus for Zscaler stands at 311.41, nearly double the current price of 167.33, signaling strong upside potential. Corpay’s consensus of 359.33 slightly exceeds its current price of 354.19, reflecting moderate bullish sentiment.
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How do institutions grade them?
The following tables summarize recent institutional grades for Zscaler, Inc. and Corpay, Inc.:
Zscaler, Inc. Grades
This table shows recent grades and actions from reputable grading firms for Zscaler, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-01-13 |
| Keybanc | Maintain | Overweight | 2026-01-12 |
| Piper Sandler | Maintain | Neutral | 2026-01-05 |
| RBC Capital | Maintain | Outperform | 2026-01-05 |
| Mizuho | Upgrade | Outperform | 2025-12-16 |
| Citigroup | Maintain | Buy | 2025-12-01 |
| Bernstein | Downgrade | Market Perform | 2025-12-01 |
| Baird | Maintain | Outperform | 2025-11-26 |
| Needham | Maintain | Buy | 2025-11-26 |
| BTIG | Maintain | Buy | 2025-11-26 |
Corpay, Inc. Grades
Below are the latest institutional grades and rating changes for Corpay, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | Maintain | Neutral | 2026-02-06 |
| JP Morgan | Maintain | Overweight | 2026-02-05 |
| RBC Capital | Maintain | Sector Perform | 2026-02-05 |
| Morgan Stanley | Maintain | Overweight | 2026-02-05 |
| Morgan Stanley | Upgrade | Overweight | 2026-01-26 |
| Oppenheimer | Maintain | Outperform | 2026-01-12 |
| Oppenheimer | Upgrade | Outperform | 2025-12-05 |
| UBS | Maintain | Neutral | 2025-11-06 |
| RBC Capital | Maintain | Sector Perform | 2025-11-06 |
| JP Morgan | Maintain | Overweight | 2025-11-06 |
Which company has the best grades?
Zscaler, Inc. has consistently received stronger grades like Buy and Outperform from top firms. Corpay, Inc.’s grades cluster around Overweight and Sector Perform. Investors might view Zscaler’s higher ratings as indicative of greater confidence from analysts.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Zscaler, Inc.
- Faces intense competition in cloud security with pressure on margins and innovation demands.
Corpay, Inc.
- Operates in payments sector with established rivals; innovation and regulatory changes heighten competitive risks.
2. Capital Structure & Debt
Zscaler, Inc.
- Maintains moderate debt with a favorable debt-to-assets ratio (28%); interest coverage is negative, signaling risk.
Corpay, Inc.
- Higher leverage with debt-to-equity of 2.58 and moderate interest coverage, increasing financial risk.
3. Stock Volatility
Zscaler, Inc.
- Beta near 1.02 implies market-level volatility; wide trading range signals investor uncertainty.
Corpay, Inc.
- Lower beta at 0.81 indicates less sensitivity to market swings, more stable stock price.
4. Regulatory & Legal
Zscaler, Inc.
- Cloud security regulations and data privacy laws impose compliance costs and potential liabilities.
Corpay, Inc.
- Payment processing regulations globally create ongoing legal and compliance challenges.
5. Supply Chain & Operations
Zscaler, Inc.
- Relies on cloud infrastructure providers; operational risks include service disruptions and data breaches.
Corpay, Inc.
- Dependent on global payment networks and fuel supply chains, vulnerable to disruptions and cost fluctuations.
6. ESG & Climate Transition
Zscaler, Inc.
- Faces pressure to reduce energy consumption in data centers and improve digital security governance.
Corpay, Inc.
- Exposure to fuel-related emissions and sustainability demands from corporate clients increase transition risks.
7. Geopolitical Exposure
Zscaler, Inc.
- Global customer base exposes it to data sovereignty laws and international tensions impacting cloud access.
Corpay, Inc.
- Operates in multiple countries including Brazil and UK, facing currency and geopolitical volatility risks.
Which company shows a better risk-adjusted profile?
Zscaler’s most critical risk is its negative interest coverage despite moderate leverage, threatening financial stability. Corpay’s key risk is its high debt-to-equity ratio, which elevates financial risk amid moderate coverage. Zscaler offers a safer bankruptcy profile (Altman Z-score 4.07 vs. 1.59) despite operational and market challenges. Corpay’s stable stock volatility and stronger profitability metrics contrast with its financial leverage concerns. Overall, Zscaler presents a better risk-adjusted profile given its stronger solvency and liquidity, though investors must watch ongoing cash flow pressures closely.
Final Verdict: Which stock to choose?
Zscaler, Inc. (ZS) impresses with its remarkable revenue growth and expanding profitability, signaling a company evolving into a cash-generating machine. However, its persistent value destruction and weak return on capital remain points of vigilance. It suits investors seeking aggressive growth with tolerance for operational risks.
Corpay, Inc. (CPAY) benefits from a strategic moat rooted in steady profitability and efficient capital use, delivering value creation despite a recent dip in ROIC. Its safer financial profile and solid free cash flow make it appealing for investors favoring Growth at a Reasonable Price (GARP) strategies.
If you prioritize rapid expansion and are comfortable with elevated risk, Zscaler outshines as a compelling choice due to its accelerating income growth and improving profitability trends. However, if you seek better stability and consistent value creation, Corpay offers superior financial resilience and a more attractive risk-return balance for cautious growth investors.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Zscaler, Inc. and Corpay, Inc. to enhance your investment decisions:
