As the digital landscape expands, the need for robust cybersecurity solutions has become paramount. Two prominent players, CrowdStrike Holdings Inc
In this stock face-off, we'll touch upon some key differences between these companies. We'll also provide investors with the Wall Street view on the stocks - addressing the key question - which stock is the better buy.
Cloud-Native & AI Platform Vs. Diverse Product Portfolio
CrowdStrike is known for its cloud-native endpoint security platform. Over the past year, the business and consequently stock, has been boosted by the rising demand for its cutting-edge cybersecurity solutions. CrowdStrike's emphasis on cloud-native technologies and artificial intelligence (AI) has set it apart in the cybersecurity landscape. The Falcon platform utilizes machine learning and behavioral analytics to provide real-time threat detection and response.
Palo Alto Networks, another cybersecurity veteran, has a diverse product portfolio contributing to its revenue streams. The company is recognized for its comprehensive security offerings, including firewalls, cloud security, and advanced threat prevention.
Market Expansion Techniques
CrowdStrike's rapid expansion into the market is evident from its increasing customer base and global reach. The company's focus on innovation positions it well for sustained growth in the ever-evolving cybersecurity landscape.
While Palo Alto Networks, with its established presence, continues to evolve by acquiring complementary technologies.
Valuations Side With Palo Alto Networks
Looking at current valuations for both the technology stocks, we see both stocks trading at expensive price multiples, given the stock surge in the recent past. While CrowdStrike stock is up 163%, Palo Alto stock has also delivered a decent return to investors of 53% over the past year.
Consequently, Palo Alto's stock appears to be trading at a less expensive forward multiple of 46.36, relative to CrowdStrike stock at 65.52 forward P/E.
The PEG ratio, however, seems to hint at something different. Incorporating in earnings growth estimates, CrowdStrike stock appears to be the better buy at a PEG of 2.60 relative to Palo Alto stock at 2.86.
Analyst See CrowdStrike As The Better Buy
Validating the PEG ratio's hint, CrowdStrike stock could offer more upside from current price levels, per consensus analyst estimates. Despite the run, the stock holds a potential 19.97% upside, relative to the 17.47% upside associated by analysts to Palo Alto's stock.
CrowdStrike and Palo Alto Networks represent formidable forces in the cybersecurity realm, each with its unique strengths and offerings. While both companies present compelling opportunities, individual investor goals may influence the choice between these cybersecurity giants.
