CrowdStrike vs SolarWinds Which Should You Buy?

CrowdStrike and SolarWinds are two prominent companies in the cybersecurity industry, each providing unique solutions to protect organizations from cyber threats. CrowdStrike is known for its cloud-based endpoint security platform, while SolarWinds offers network management and monitoring tools. Both companies have experienced significant growth in recent years, with their stocks attracting the attention of investors. This comparison explores the performance of CrowdStrike and SolarWinds stocks, analyzing factors such as market trends, financials, and growth potential in the cybersecurity sector.

CrowdStrike or SolarWinds?

When comparing CrowdStrike and SolarWinds, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CrowdStrike and SolarWinds.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CrowdStrike has a dividend yield of -%, while SolarWinds has a dividend yield of 6.74%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CrowdStrike reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, SolarWinds reports a 5-year dividend growth of 0.00% year and a payout ratio of 435.01%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CrowdStrike P/E ratio at 708.26 and SolarWinds's P/E ratio at 65.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CrowdStrike P/B ratio is 29.35 while SolarWinds's P/B ratio is 1.85.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CrowdStrike has seen a 5-year revenue growth of 12.86%, while SolarWinds's is -0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CrowdStrike's ROE at 4.71% and SolarWinds's ROE at 2.87%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $357.55 for CrowdStrike and $14.60 for SolarWinds. Over the past year, CrowdStrike's prices ranged from $200.81 to $398.33, with a yearly change of 98.36%. SolarWinds's prices fluctuated between $10.14 and $14.93, with a yearly change of 47.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.