Vote for the Best: S vs CRWD Cybersecurity Stock Showdown

SentinelOne and CrowdStrike Holdings are both well-known cybersecurity stocks but have significant differences in valuation. Using TipRanks’ comparison tool, the article takes a closer look at the two companies to determine which is the better buy. SentinelOne operates an autonomous cybersecurity platform that utilizes artificial intelligence (AI) to prevent, detect, and respond to potential threats, while CrowdStrike Holdings offers cloud-based security that supports next-generation cyber protection. While SentinelOne’s stock has fallen 3% year-to-date, shares have gained 84% over the last year. On the other hand, shares of CrowdStrike Holdings are already up 17.6% year-to-date and have gained 195% in the past year. Both companies are not yet profitable, so their price-to-sales (P/S) ratios are compared to gauge their valuations against each other and the industry. SentinelOne is trading slightly higher than its industry at a P/S of 12.95, while CrowdStrike is trading at a P/S of 24.5, a premium to both its industry and SentinelOne. Insider activity is also taken into account, with insiders taking significant profits in both companies. Despite its potential for long-term gains, CrowdStrike is considered overbought and a pullback could be imminent. While SentinelOne is demonstrating improvement in earnings, it is not expected to be profitable for a few more years. Ultimately, the article concludes that a bearish view seems appropriate for SentinelOne, while a neutral view is taken for CrowdStrike, pending a better entry price.