SentinelOne (S) vs CrowdStrike (CRWD): Reddit Discussion Analysis of Valuation Gap and Profitability Concerns

This analysis is based on a Reddit post [1] asking about SentinelOne (S) relative to CrowdStrike (CRWD). The post highlights S’s 30%+ 5-year revenue growth but 60% stock drop, 6.75x revenue valuation vs CRWD’s 32x, -$288M net income, and a 4.4 Glassdoor rating. Discussion included bearish points (profitability issues, competition) and a bullish claim (Israeli origin driving growth).

SentinelOne’s stock underperformed CRWD dramatically over 5 years (-61.86% vs +232.24% [0]). The valuation gap reflects investor skepticism about S’s profitability (GAAP net margin -47.32% vs CRWD’s -6.84% [0]) and scalability. While S achieved first non-GAAP net income in Q2 2025 [3], GAAP profitability remains elusive with operating expenses exceeding revenue [2].

Cross-domain connections: Revenue growth (33% YoY Q2 2025 [3]) does not translate to stock gains without profitability. CRWD’s 24x larger market cap [0] makes market share gains challenging for S despite winning evaluations [3]. Israeli origin [1,2] contributes to expertise but does not offset profitability concerns.

: Negative GAAP profitability (-47.32% [0]), high operating expenses [2], intense competition from CRWD [0], and growth investments delaying profitability [3]. These may lead to further underperformance.
: Low valuation (6.75x revenue [1]) could be an opportunity if S achieves sustained GAAP profitability. Partnerships (Google Mandiant [3]) and Israeli expertise may support growth if profitable.

SentinelOne (S) has strong revenue growth but struggles with GAAP profitability and stock underperformance. Valuation gap vs CRWD reflects investor skepticism. Bearish factors: profitability issues, competition. Bullish factors: Israeli origin, non-GAAP milestones. Monitor GAAP net income, operating efficiency, and market share gains for future prospects.