Microsoft (NASDAQ:MSFT) vs. SentinelOne (NYSE:S) Financial Survey

SentinelOne (NYSE:S) and Microsoft (NASDAQ:MSFT) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for SentinelOne and Microsoft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SentinelOne	1	12	16	0	2.52
Microsoft	0	5	42	0	2.89

SentinelOne currently has a consensus price target of $23.64, indicating a potential upside of 4.92%. Microsoft has a consensus price target of $564.27, indicating a potential upside of 14.27%. Given Microsoft’s stronger consensus rating and higher possible upside, analysts plainly believe Microsoft is more favorable than SentinelOne.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SentinelOne	-30.95%	-15.73%	-9.62%
Microsoft	40.31%	31.98%	18.70%

Institutional & Insider Ownership

90.9% of SentinelOne shares are held by institutional investors. Comparatively, 71.1% of Microsoft shares are held by institutional investors. 4.3% of SentinelOne shares are held by insiders. Comparatively, 0.0% of Microsoft shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

SentinelOne has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Microsoft has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SentinelOne	$1.00 billion	7.83	-$450.73 million	($1.01)	-22.31
Microsoft	$331.84 billion	11.05	$133.75 billion	$17.96	27.49

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

Summary

Microsoft beats SentinelOne on 12 of the 14 factors compared between the two stocks.

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.

About Microsoft

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.