Zscaler (NASDAQ:ZS) vs. Venus Acquisition (NASDAQ:VENA) Critical Review

Zscaler (NASDAQ:ZS) and Venus Acquisition (NASDAQ:VENA) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

Zscaler has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Venus Acquisition has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500.

Profitability

This table compares Zscaler and Venus Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zscaler	-3.62%	-5.84%	-1.36%
Venus Acquisition	N/A	-2.37%	0.14%

Institutional and Insider Ownership

46.5% of Zscaler shares are owned by institutional investors. Comparatively, 67.0% of Venus Acquisition shares are owned by institutional investors. 19.2% of Zscaler shares are owned by company insiders. Comparatively, 22.7% of Venus Acquisition shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Zscaler and Venus Acquisition, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zscaler	0	8	26	1	2.80
Venus Acquisition	0	0	0	0	N/A

Zscaler presently has a consensus price target of $225.21, suggesting a potential upside of 13.87%. Given Zscaler’s higher probable upside, equities analysts clearly believe Zscaler is more favorable than Venus Acquisition.

Valuation & Earnings

This table compares Zscaler and Venus Acquisition’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zscaler	$2.03 billion	14.73	-$202.34 million	($0.51)	-387.80
Venus Acquisition	N/A	N/A	-$810,000.00	N/A	N/A

Venus Acquisition has lower revenue, but higher earnings than Zscaler.

Summary

Venus Acquisition beats Zscaler on 6 of the 11 factors compared between the two stocks.

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.

About Venus Acquisition

Venus Acquisition Corporation does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, stock purchase, reorganization, and business combination with one or more businesses. It intends to focus on businesses in the Internet and high technology, financial technology, clean energy, health care, consumer and retail, energy and resources, food processing, manufacturing, and education sectors in Asian market. The company was incorporated in 2018 and is based in New York, New York.