Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating CrowdStrike Holdings (NASDAQ:CRWD) in comparison to its major competitors within the Software industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.
CrowdStrike Holdings Background CrowdStrike is a cloud-based cybersecurity company specializing in next-generation security verticals such as endpoint, cloud workload, identity, and security operations. CrowdStrike's primary offering is its Falcon platform that offers a proverbial single pane of glass for an enterprise to detect and respond to security threats attacking its IT infrastructure. The Texas-based firm was founded in 2011 and went public in 2019.
| CrowdStrike Holdings Inc | 847.84 | 33.11 | 25.01 | 2.48% | $0.12 | $0.64 | 32.63% |
| Microsoft Corp | 35.97 | 12.19 | 13.10 | 8.93% | $33.55 | $43.35 | 17.03% |
| Oracle Corp | 30.92 | 57.28 | 6.28 | 50.61% | $5.3 | $9.41 | 7.11% |
| ServiceNow Inc | 70.18 | 16.64 | 14.31 | 4.41% | $0.56 | $2.08 | 24.19% |
| Palo Alto Networks Inc | 42.62 | 21.37 | 13.41 | 6.32% | $0.33 | $1.47 | 15.33% |
| Gen Digital Inc | 25.86 | 7.08 | 4.18 | 5.81% | $0.49 | $0.78 | 2.11% |
| Monday.Com Ltd | 550.32 | 12.90 | 14.21 | 0.85% | $-0.0 | $0.19 | 33.69% |
| Dolby Laboratories Inc | 41.76 | 3.21 | 6.24 | 4.1% | $0.13 | $0.33 | -3.02% |
| Qualys Inc | 32.61 | 12.84 | 9.28 | 10.29% | $0.05 | $0.12 | 11.57% |
| CommVault Systems Inc | 28.70 | 16.80 | 5.78 | 55.72% | $0.02 | $0.18 | 9.74% |
| Teradata Corp | 77.64 | 58.40 | 1.82 | 21.16% | $0.07 | $0.28 | -2.31% |
| N-able Inc | 89 | 3.48 | 5.73 | 1.05% | $0.03 | $0.1 | 13.96% |
| Progress Software Corp | 32.71 | 4.75 | 3.18 | 4.91% | $0.06 | $0.15 | 12.46% |
| SolarWinds Corp | 193 | 1.52 | 2.52 | 1.14% | $0.07 | $0.17 | 3.94% |
| Average | 96.25 | 17.57 | 7.7 | 13.48% | $3.13 | $4.51 | 11.22% |
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.dividend-frequency { font-size: 12px; color: #6c757d; } After examining CrowdStrike Holdings, the following trends can be inferred:
- At 847.84, the stock's Price to Earnings ratio significantly exceeds the industry average by 8.81x, suggesting a premium valuation relative to industry peers.
- It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 33.11 which exceeds the industry average by 1.88x.
- The stock's relatively high Price to Sales ratio of 25.01, surpassing the industry average by 3.25x, may indicate an aspect of overvaluation in terms of sales performance.
- The company has a lower Return on Equity (ROE) of 2.48%, which is 11.0% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
- The company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $120 Million, which is 0.04x below the industry average. This potentially indicates lower profitability or financial challenges.
- The gross profit of $640 Million is 0.14x below that of its industry, suggesting potential lower revenue after accounting for production costs.
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The company's revenue growth of 32.63% is notably higher compared to the industry average of 11.22%, showcasing exceptional sales performance and strong demand for its products or services.
The debt-to-equity (D/E) ratio helps evaluate the capital structure and financial leverage of a company.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, CrowdStrike Holdings can be assessed by comparing it to its top 4 peers, resulting in the following observations:
- Compared to its top 4 peers, CrowdStrike Holdings has a stronger financial position indicated by its lower debt-to-equity ratio of 0.34.
- This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute by investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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