CrowdStrike (NASDAQ:CRWD) & Check Point Software Technologies (NASDAQ:CHKP) Critical Survey

CrowdStrike (NASDAQ:CRWD) and Check Point Software Technologies (NASDAQ:CHKP) are both large-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for CrowdStrike and Check Point Software Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CrowdStrike	2	10	30	3	2.76
Check Point Software Technologies	0	17	11	1	2.45

CrowdStrike currently has a consensus target price of $403.20, suggesting a potential downside of 1.83%. Check Point Software Technologies has a consensus target price of $232.04, suggesting a potential upside of 6.64%. Given Check Point Software Technologies’ higher possible upside, analysts clearly believe Check Point Software Technologies is more favorable than CrowdStrike.

Profitability

This table compares CrowdStrike and Check Point Software Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CrowdStrike	3.39%	7.11%	2.72%
Check Point Software Technologies	32.97%	32.40%	16.26%

Volatility and Risk

CrowdStrike has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Valuation & Earnings

This table compares CrowdStrike and Check Point Software Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CrowdStrike	$3.95 billion	25.75	$89.33 million	($0.08)	-5,134.13
Check Point Software Technologies	$2.60 billion	9.19	$845.70 million	$7.58	28.71

Check Point Software Technologies has lower revenue, but higher earnings than CrowdStrike. CrowdStrike is trading at a lower price-to-earnings ratio than Check Point Software Technologies, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

71.2% of CrowdStrike shares are owned by institutional investors. Comparatively, 98.5% of Check Point Software Technologies shares are owned by institutional investors. 4.3% of CrowdStrike shares are owned by company insiders. Comparatively, 29.0% of Check Point Software Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Check Point Software Technologies beats CrowdStrike on 8 of the 15 factors compared between the two stocks.

About CrowdStrike

CrowdStrike Holdings, Inc. provides cybersecurity solutions in the United States and internationally. Its unified platform offers cloud-delivered protection of endpoints, cloud workloads, identity, and data. The company offers corporate endpoint and cloud workload security, managed security, security and vulnerability management, IT operations management, identity protection, SIEM and log management, threat intelligence, data protection, security orchestration, automation and response and AI powered workflow automation, and securing generative AI workload services. It primarily sells subscriptions to its Falcon platform and cloud modules. The company was incorporated in 2011 and is headquartered in Austin, Texas.

About Check Point Software Technologies

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against fifth generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile. In addition, the company offers security gateways and software platforms that support small and medium sized business. Further, it provides cloud network security, cloud native application protection, security and posture management, cloud identity and entitlement, cloud workload protection, cloud detection and response, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Additionally, the company offers technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products. It sells its products through distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel.