Contrasting Smartsheet (NYSE:SMAR) & CrowdStrike (NASDAQ:CRWD)

Smartsheet (NYSE:SMAR) and CrowdStrike (NASDAQ:CRWD) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Institutional and Insider Ownership

90.0% of Smartsheet shares are held by institutional investors. Comparatively, 71.2% of CrowdStrike shares are held by institutional investors. 4.5% of Smartsheet shares are held by insiders. Comparatively, 4.3% of CrowdStrike shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Smartsheet and CrowdStrike”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smartsheet	$958.34 million	8.18	-$104.63 million	($0.06)	-933.67
CrowdStrike	$3.74 billion	24.23	$89.33 million	$0.51	721.61

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

Analyst Ratings

This is a summary of current ratings and target prices for Smartsheet and CrowdStrike, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartsheet	1	17	2	0	2.05
CrowdStrike	1	9	30	3	2.81

Smartsheet presently has a consensus price target of $55.82, indicating a potential downside of 0.35%. CrowdStrike has a consensus price target of $355.80, indicating a potential downside of 3.32%. Given Smartsheet’s higher probable upside, equities analysts clearly believe Smartsheet is more favorable than CrowdStrike.

Profitability

This table compares Smartsheet and CrowdStrike’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smartsheet	-0.80%	2.33%	1.12%
CrowdStrike	3.39%	7.11%	2.72%

Volatility & Risk

Smartsheet has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, CrowdStrike has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Summary

CrowdStrike beats Smartsheet on 12 of the 15 factors compared between the two stocks.

About Smartsheet

Smartsheet, Inc. engages in managing and automating collaborative work. Its platform provides solutions that eliminate the obstacles to capturing information, including a familiar and intuitive spreadsheet interface as well as easily customizable forms. The company was founded by W. Eric Browne, Maria Colacurcio, John D. Creason and Brent R. Frei in June 2005 and is headquartered in Bellevue, WA.

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.