Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Zoom Communications, Inc. or Unity Software Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.
Read on to learn how Zoom Communications, Inc. and Unity Software Inc. compare based on key financial metrics to determine which better meets your investment needs.
About Zoom Communications, Inc. and Unity Software Inc.
Zoom Communications, Inc. provides an Artificial Intelligence-first work platform for human connection in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, a cloud phone system; and Zoom Team Chat enables users to share messages, images, files, and content in desktop, laptop, tablet, and mobile devices. It also provides Zoom Mail and Calendar; Zoom Workflow Automation, a no-code workflow builder that helps users build workflows across Zoom Workplace and third-party applications; Zoom Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; and Zoom Clips for capturing video and screen content. In addition, the company offers Zoom Contact Center, an omnichannel contact center solution; Zoom Revenue Accelerator, a conversation intelligence software for Zoom Meetings and Zoom Phone; Zoom Events to manage, host, market, and report on all of virtual and hybrid events; Zoom Sessions that allows customers to use the signature features; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Rooms, a software-based conference room system; Workspace Reservation; Zoom Developer Platform; App Marketplace which integrates platform with other applications, platforms, websites, and services; and Zoom Apps. It serves individuals; and education, entertainment/media, enterprise infrastructure, finance, government, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries. The company was formerly known as Zoom Video Communications, Inc. and changed its name to Zoom Communications, Inc. in November 2024. The company was incorporated in 2011 and is headquartered in San Jose, California.
Unity Software Inc. operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content. In addition, the company offers enterprise support and consumption services; professional services, including consulting, platform integration, training, and custom application and workflow development services; and advertising and game publishing services. It provides its solutions directly through its online store, field sales operations, independent distributors, and resellers. The company serves enterprises, mid-market companies, government, and non-profit institutions; mid-sized, small, and independent businesses; and individuals from various industries. Unity Software Inc. was founded in 2004 and is headquartered in San Francisco, California.
Latest Software and Zoom Communications, Inc., Unity Software Inc. Stock News
As of February 19, 2026, Zoom Communications, Inc. had a $26.9 billion market capitalization, compared to the Software median of $883.2 million. Zoom Communications, Inc.’s stock is up 5.4% in 2026, down 1.4% in the previous five trading days and up 6.76% in the past year.
Currently, Zoom Communications, Inc.’s price-earnings ratio is 17.7. Zoom Communications, Inc.’s trailing 12-month revenue is $4.8 billion with a 33.2% net profit margin. Year-over-year quarterly sales growth most recently was 4.4%. Analysts expect adjusted earnings to reach $5.972 per share for the current fiscal year. Zoom Communications, Inc. does not currently pay a dividend.
As of February 19, 2026, Unity Software Inc. had a $8.0 billion market cap, putting it in the 75th percentile of all stocks. Unity Software Inc.’s stock is down 58.8% in 2026, down 7.4% in the previous five trading days and down 15.26% in the past year.
Currently, Unity Software Inc. does not have a price-earnings ratio. Unity Software Inc.’s trailing 12-month revenue is $1.8 billion with a -21.8% net profit margin. Year-over-year quarterly sales growth most recently was 10.1%. Analysts expect adjusted earnings to reach $0.969 per share for the current fiscal year. Unity Software Inc. does not currently pay a dividend.
How We Compare Zoom Communications, Inc. and Unity Software Inc. Stock Grades
Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Zoom Communications, Inc. and Unity Software Inc.’s stock grades to see how they measure up against one another.
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Zoom Communications, Inc. and Unity Software Inc. Stock Value Grades
| Company | Ticker | Value |
| Zoom Communications, Inc. | ZM | C |
| Unity Software Inc. | U | D |
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.
Zoom Communications, Inc. has a Value Score of 51, which is Average.
Unity Software Inc. has a Value Score of 27, which is Expensive.
The Value Stock Winner: No Clear Winner
Neither Zoom Communications, Inc. or Unity Software Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Zoom Communications, Inc. or Unity Software Inc. is the better investment when it comes to value.
Zoom Communications, Inc. and Unity Software Inc.’s Quality Grades
| Company | Ticker | Quality |
| Zoom Communications, Inc. | ZM | A |
| Unity Software Inc. | U | C |
Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.
The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.
Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.
Zoom Communications, Inc. has a Quality Score of 96, which is Very Strong.
Unity Software Inc. has a Quality Score of 49, which is Average.
The Quality Grade Winner: Zoom Communications, Inc.
As you can clearly see from the Quality Grade breakdown above, Zoom Communications, Inc. has a better overall quality grade than Unity Software Inc.. For investors who are looking for companies with higher quality than others in the same industry, Zoom Communications, Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
Zoom Communications, Inc. and Unity Software Inc.’s Estimate Revisions Grades
| Company | Ticker | Earnings Estimate |
| Zoom Communications, Inc. | ZM | B |
| Unity Software Inc. | U | B |
Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).
Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.
Zoom Communications, Inc. has a Earnings Estimate Score of 74, which is Positive.
Unity Software Inc. has a Earnings Estimate Score of 64, which is Positive.
The Earnings Estimate Revisions Grade Winner: It’s a Tie!
Looking at the Earnings Estimate Revisions Grade breakdown above, both Zoom Communications, Inc. and Unity Software Inc. have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether Zoom Communications, Inc. or Unity Software Inc. is a better fit.
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Other Zoom Communications, Inc. and Unity Software Inc. Grades
In addition to Quality, Value and Estimate Revisions, A+ Investor also provides grades for Growth and Momentum.
Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.
Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.
These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Zoom Communications, Inc. and Unity Software Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.
So, Which Is the Better Investment, Zoom Communications, Inc. or Unity Software Inc. Stock?
Overall, Zoom Communications, Inc. stock has a Value Score of 51, Estimate Revisions Score of 74 and Quality Score of 96.
Unity Software Inc. stock has a Value Score of 27, Estimate Revisions Score of 64 and Quality Score of 49.
Comparing Zoom Communications, Inc. and Unity Software Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.
Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.
A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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