Which Is a Better Investment, Tyler Technologies, Inc. or Zoom Video Communications Inc Stock?

By Jenna Brashear
September 06, 2026
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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., Tyler Technologies or 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., Tyler Technologies and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Zoom Communications, Inc., Tyler Technologies and Inc.

Zoom Communications, Inc. provides an Artificial Intelligence-first open 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 Docs, a modular workspace; Zoom Whiteboard, an interactive canvas; Zoom Clips for capturing video and screen content; Zoom Rooms, a software-based conference room system; and Workspace Reservation. In addition, the company offers Zoom Contact Center, an omnichannel 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 Webinars Plus; and Zoom Webinars which supports interactive video presentations to large audiences. Further, it provides Workvivo, an all-in-one employee experience platform; Zoom Developer Platform and 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.

Tyler Technologies, Inc. provides integrated software and technology management solutions for the public sector in the United States. It operates in two segments, Enterprise Software and Platform Technologies. The company designs, develops, markets, and supports a range of software solutions to serve mission-critical back-office functions. It also offers platform and transformative technology solutions, such as cybersecurity, data and insights, digital solutions, payments, platform technologies, and outdoor recreation; public administration solutions, including civic services, ERP, property and recording, and regulatory; and corrections, courts and justice, and public safety solutions. In addition, the company provides school ERP and student transportation K-12 education solutions; and health and human services solutions comprising environmental health, and disability and benefits. It has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was formerly known as Tyler Corporation and changed its name to Tyler Technologies, Inc. in June 1999. Tyler Technologies, Inc. was founded in 1966 and is based in Plano, Texas.

Latest Software and Zoom Communications, Inc., Tyler Technologies, Inc. Stock News

As of September 4, 2026, Zoom Communications, Inc. had a $29.6 billion market capitalization, compared to the Software median of $1.1 million. Zoom Communications, Inc.’s stock is up 17.4% in 2026, up 2.9% in the previous five trading days and up 22.39% in the past year.

Currently, Zoom Communications, Inc.’s price-earnings ratio is 9.4. Zoom Communications, Inc.’s trailing 12-month revenue is $5.0 billion with a 65.2% net profit margin. Year-over-year quarterly sales growth most recently was 4.9%. There are no analysts providing consensus earnings estimates for the current fiscal year. Zoom Communications, Inc. does not currently pay a dividend.

As of September 4, 2026, Tyler Technologies, Inc. had a $14.9 billion market cap, putting it in the 82nd percentile of all stocks. Tyler Technologies, Inc.’s stock is down 19.8% in 2026, down 3.7% in the previous five trading days and down 34.32% in the past year.

Currently, Tyler Technologies, Inc.’s price-earnings ratio is 47.9. Tyler Technologies, Inc.’s trailing 12-month revenue is $2.4 billion with a 13.4% net profit margin. Year-over-year quarterly sales growth most recently was 8.2%. Analysts expect adjusted earnings to reach $13.099 per share for the current fiscal year. Tyler Technologies, Inc. does not currently pay a dividend.

How We Compare Zoom Communications, Inc., Tyler Technologies and 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., Tyler Technologies and Inc.’s stock grades to see how they measure up against one another.

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Zoom Communications, Inc., Tyler Technologies and Inc. Growth Grades

Company Ticker Growth
Zoom Communications, Inc. ZM A
Tyler Technologies, Inc. TYL A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Zoom Communications, Inc. has a Growth Score of 89, which is Very Strong. Tyler Technologies, Inc. has a Growth Score of 89, which is Very Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Zoom Communications, Inc., Tyler Technologies and Inc. have a grade of A. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Zoom Communications, Inc., Tyler Technologies and Inc.’s Momentum Grades

Company Ticker Momentum
Zoom Communications, Inc. ZM C
Tyler Technologies, Inc. TYL D

Momentum grades help to 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. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Zoom Communications, Inc. has a Momentum Score of 53, which is Average. Tyler Technologies, Inc. has a Momentum Score of 29, which is Weak.

The Momentum Stock Winner: No Clear Winner

Neither Zoom Communications, Inc., Tyler Technologies or Inc. has a strong enough Momentum Grade to be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Zoom Communications, Inc., Tyler Technologies or Inc. is the better investment when it comes to momentum.

Zoom Communications, Inc., Tyler Technologies and Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Zoom Communications, Inc. ZM B
Tyler Technologies, Inc. TYL C

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 72, which is Positive. Tyler Technologies, Inc. has a Earnings Estimate Score of 45, which is Neutral.

The Earnings Estimate Revisions Grade Winner: Zoom Communications, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Zoom Communications, Inc. has a better Earnings Estimate Revisions Grade than Tyler Technologies, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Zoom Communications, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

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Other Zoom Communications, Inc., Tyler Technologies and Inc. Grades

In addition to Momentum, Estimate Revisions and Growth, A+ Investor also provides grades for Value and Quality.

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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 Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite 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 F-Score.

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., Tyler Technologies and 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., Tyler Technologies or Inc. Stock?

Overall, Zoom Communications, Inc. stock has a Growth Score of 89, Momentum Score of 53 and Estimate Revisions Score of 72.

Tyler Technologies, Inc. stock has a Growth Score of 89, Momentum Score of 29 and Estimate Revisions Score of 45.

Comparing Zoom Communications, Inc., Tyler Technologies and 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.

Learn More About A+ Investor

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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