CrowdStrike (NASDAQ:CRWD) and Check Point Software Technologies (NASDAQ:CHKP) Head-To-Head Analysis

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

Risk & Volatility

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

Institutional & Insider Ownership

98.5% of Check Point Software Technologies shares are owned by institutional investors. Comparatively, 71.2% of CrowdStrike shares are owned by institutional investors. 29.0% of Check Point Software Technologies shares are owned by insiders. Comparatively, 3.3% of CrowdStrike shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings for Check Point Software Technologies and CrowdStrike, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Check Point Software Technologies	0	16	11	1	2.46
CrowdStrike	2	10	30	3	2.76

Check Point Software Technologies currently has a consensus target price of $232.04, suggesting a potential upside of 8.18%. CrowdStrike has a consensus target price of $403.20, suggesting a potential downside of 7.51%. Given Check Point Software Technologies’ higher probable upside, research analysts clearly believe Check Point Software Technologies is more favorable than CrowdStrike.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Check Point Software Technologies	$2.60 billion	9.06	$845.70 million	$7.58	28.30
CrowdStrike	$3.95 billion	27.33	$89.33 million	($0.08)	-5,449.25

Check Point Software Technologies has higher earnings, but lower revenue 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.

Summary

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

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.

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.