Okta (NASDAQ:OKTA – Get Free Report) and CyberArk Software (NASDAQ:CYBR – Get Free Report) are both large-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Earnings & Valuation
This table compares Okta and CyberArk Software”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Okta | $2.61 billion | 6.67 | $28.00 million | $0.63 | 157.81 |
| CyberArk Software | $1.00 billion | 18.92 | -$93.46 million | ($1.86) | -205.94 |
Risk and Volatility
Okta has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, CyberArk Software has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.
Insider & Institutional Ownership
86.6% of Okta shares are owned by institutional investors. Comparatively, 91.8% of CyberArk Software shares are owned by institutional investors. 5.7% of Okta shares are owned by insiders. Comparatively, 1.4% of CyberArk Software shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for Okta and CyberArk Software, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Okta | 1 | 14 | 20 | 0 | 2.54 |
| CyberArk Software | 0 | 1 | 26 | 1 | 3.00 |
Okta currently has a consensus target price of $121.59, suggesting a potential upside of 22.30%. CyberArk Software has a consensus target price of $416.79, suggesting a potential upside of 8.81%. Given Okta’s higher probable upside, equities analysts plainly believe Okta is more favorable than CyberArk Software.
Profitability
This table compares Okta and CyberArk Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Okta | 4.85% | 2.79% | 1.92% |
| CyberArk Software | -7.97% | 0.71% | 0.43% |
Summary
Okta beats CyberArk Software on 9 of the 15 factors compared between the two stocks.
About Okta
Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Sign-On that enables users to access applications in the cloud or on-premises from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data; API Access Management enables organizations to secure APIs; Access Gateway enables organizations to extend Workforce Identity Cloud; and Okta Device Access enables end users to securely log in to devices with Okta credentials. It also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Lifecycle Management enables IT organizations or developers to manage a user's identity throughout its lifecycle; Okta Identity Governance provides identity access management and identity governance solutions; Advanced Server Access offers access management to secure cloud infrastructure; Okta Privileged Access enables organizations to reduce risk with unified access and governance management for on-premises and cloud resources; and Okta Workforce Identity Workflows. In addition, the company offers Universal Login, which allows customers to provide login experience across different applications and devices; and Attack Protection, a suite of security capabilities that protects customers from different types of malicious traffic. Further, it provides Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud, Organizations, Actions and Extensibility, and Enterprise Connections. The company sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.
About CyberArk Software
CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sells software-based identity security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager, which offers risk-based credential security and session; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide secure access to third-party vendors; Dynamic Privileged Access, a SaaS solution that provides just-in-time access to Linux Virtual Machines; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Secure Desktop, a solution that protects access to endpoints. The company also provides workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure web sessions, workforce password management, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; Conjur Enterprise and Conjur Cloud, which offers a secrets management solution for specific requirements; Secrets Hub, a centralized visibility and management platform; Cloud Security solutions; Identity Management solutions, including lifecycle management, identity flows, identity compliance, and directory services; and Secure Browser. The company serves financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies. The company was incorporated in 1996 and is headquartered in Petah Tikva, Israel.
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