Critical Analysis: SentinelOne (NYSE:S) & Okta (NASDAQ:OKTA)

Okta (NASDAQ:OKTA) and SentinelOne (NYSE:S) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Risk & Volatility

Okta has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, SentinelOne has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Okta and SentinelOne, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Okta	1	13	18	0	2.53
SentinelOne	0	7	19	2	2.82

Okta currently has a consensus price target of $113.10, indicating a potential upside of 1.69%. SentinelOne has a consensus price target of $29.48, indicating a potential upside of 48.04%. Given SentinelOne’s stronger consensus rating and higher probable upside, analysts clearly believe SentinelOne is more favorable than Okta.

Earnings and Valuation

This table compares Okta and SentinelOne”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Okta	$2.53 billion	7.52	-$355.00 million	($0.35)	-317.77
SentinelOne	$770.12 million	8.31	-$338.69 million	($0.94)	-21.19

SentinelOne has lower revenue, but higher earnings than Okta. Okta is trading at a lower price-to-earnings ratio than SentinelOne, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.6% of Okta shares are held by institutional investors. Comparatively, 90.9% of SentinelOne shares are held by institutional investors. 7.0% of Okta shares are held by company insiders. Comparatively, 5.6% of SentinelOne shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Okta and SentinelOne’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Okta	-1.54%	0.47%	0.32%
SentinelOne	-37.61%	-15.80%	-10.96%

Summary

SentinelOne beats Okta on 8 of the 15 factors compared between the two stocks.

About Okta

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

About SentinelOne

SentinelOne, Inc. operates as a cybersecurity provider in the United States and internationally. Its Singularity Platform delivers an artificial intelligence-powered autonomous threat prevention, detection, and response capabilities across an organization's endpoints, cloud workloads, and identify credentials, which enables seamless and autonomous protection against a spectrum of cyber threats. In addition, it offers endpoint protection, endpoint detection and response, cloud and identity security, attack surface management, mobile endpoint security, xdr power tools, watchtower, and vigilance MDR. The company was formerly known as Sentinel Labs, Inc. and changed its name to SentinelOne, Inc. in March 2021. SentinelOne, Inc. was incorporated in 2013 and is headquartered in Mountain View, California.