SKYWORKS SOLUTIONS, INC. (SWKS) vs. Zscaler, Inc. (ZS) Stock Comparison & Valuation | Edwyn

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SKYWORKS SOLUTIONS, INC. (SWKS) vs. Zscaler, Inc. (ZS) Stock Comparison & Valuation | Edwyn

Updated 2026-08-04 12:09 UTC

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SWKS looks fundamentally stronger and far cheaper than ZS on earnings and cash-generation metrics, but ZS-implied valuation framework is distorted by ZS’s loss-making profile and SWKS’s weaker growth, making the comparison mixed rather than decisively bullish.

Actionable Takeaway

If you believe SWKS can reaccelerate growth or at least stabilize revenue while maintaining current profitability, then holding or selectively buying SWKS makes sense because it is already profitable, trades at 2.3x sales versus ZS at 9.3x, and sits within its own historical valuation band; if not, ZS-implied upside is too dependent on an arguably incomparable ZS multiple.

On the provided P/S basis, SWKS trades at 2.3x versus ZS at 9.3x, while the model implies a $254.70 price for SWKS, far above the current $61.29. However, that implied upside is driven by a ZS multiple that may not be directly comparable because ZS has negative net income and negative operating margin.

Supporting Metrics

Key Risks

SWKS revenue growth is negative at -2.2%, which could keep the stock capped despite low valuation.
ZS-implied upside is based on ZS's 9.3x P/S despite ZS having -1.6% net margin and -4.8% operating margin, reducing comparability.
SWKS's F-Score of 5/9 and DCF range of $46.05-$62.30 suggest limited evidence of a strong near-term re-rating absent operational improvement.