Better Buy: Zoom vs. Okta
Shares of Zoom Video Communications (NASDAQ: ZM) and Okta (NASDAQ: OKTA) have both underperformed the market in the past year, but for very different reasons. Zoom is struggling to boost sales following the pandemic spike, yet remains highly profitable. Okta, on the other hand, is growing quickly but losing money.
Both software-as-a-service (SaaS) companies have announced fresh data on their recent operating trends. So let's compare them to see which looks like a better buy for investors today.
There's a stark difference between Zoom and Okta when it comes to growth expectations. Most Wall Street pros are looking for Okta's sales to rise by about 17% this year, thanks to a growing cybersecurity industry and contributions from the company's Auth0 acquisition. Zoom, in contrast, is projecting just 2% higher sales in the fiscal year that started in early February.
Source Fool.com
