SentinelOne's Stealth Mode: Why the Undervalued Cybersecurity Leader Could Outpace CrowdStrike in 2025

The cybersecurity arms race has never been more intense. As hackers grow bolder and enterprises demand ironclad defenses, two industry titans—CrowdStrike (CRWD) and SentinelOne (S)—are locked in a battle for dominance. But when it comes to valuation, growth, and strategic moats, the scales may be tipping in favor of the underdog.

Let's start with the math.

Valuation: A Chasm Between Titans

SentinelOne's stock is trading at a staggering discount compared to CrowdStrike. As of mid-2025, CrowdStrike commands an $117 billion market cap, riding on its 19.4x forward price-to-sales (P/S) multiple—three times that of SentinelOne, which trades at just 7.5x forward P/S. ()

This gap is puzzling. Both companies are growing revenue at similar clip—CrowdStrike at ~23% and SentinelOne at ~27%—yet the market is assigning CrowdStrike a premium for its scale and brand. But is that premium justified?

Analysts don't think so. SentinelOne's $26 price target (vs. ~$19/share now) implies 37% upside, fueled by its path to profitability and underappreciated growth catalysts. CrowdStrike, meanwhile, faces skepticism: its “extremely rich” valuation has led some analysts to rate it a Hold, given its reliance on customer discounts post-outage and slowing free cash flow.

Growth: The Lenovo Deal and AI's Quiet Revolution

SentinelOne's Lenovo partnership is a game-changer. Starting late 2025, the company will pre-install its platform on 59 million PCs annually, instantly boosting recurring revenue and customer reach. This isn't just a numbers game: it's a strategic play to embed SentinelOne's AI-driven threat detection into enterprise workflows before rivals can react.

Meanwhile, CrowdStrike's growth is hamstrung by its own missteps. The July 2024 outage—the “cloud crash”—cost it customer trust and forced aggressive discounting to retain clients. While margins are improving, the scars remain. SentinelOne, by contrast, has no such baggage and is cash flow positive by 2025, with GAAP profitability expected by 2026–2027.

The AI Edge

Behind the scenes, SentinelOne is quietly leveraging AI to redefine cybersecurity. Its autonomous platform uses machine learning to predict and neutralize threats in real time, a capability that's resonating with enterprises tired of reactive solutions. CrowdStrike's AI efforts, while robust, lack the same differentiation in a crowded market.

Risks and Reality Checks

No stock is without risks. SentinelOne's big bet on Lenovo hinges on flawless execution—any supply chain hiccups or pricing disputes could derail progress. It also faces CrowdStrike's relentless competition, which still holds a 35% market share lead.

For CrowdStrike, the risks are more existential. The outage's lingering effects—customer attrition and dilution from stock sales—have made investors skittish. Its $1 billion buyback program is a confidence boost, but it's hard to shake the feeling that the stock is priced for perfection, not reality.

The Bottom Line: Buy the Discount, Not the Name

The math here is clear. SentinelOne's 7.5x P/S is a steal relative to its growth trajectory and upcoming catalysts. Its path to $0.85 EPS by 2027 and the Lenovo deal's ~$200 million annual revenue impact give it far more upside than CrowdStrike, which trades at 19.4x sales with slower growth.

Investors should favor SentinelOne in 2025. Its valuation is too cheap to ignore, its growth engines are firing on all cylinders, and its AI-driven strategy is future-proof. CrowdStrike remains a cybersecurity giant, but its premium price and post-outage baggage make it a Hold—not a buy—until valuation gaps narrow.

Final Verdict:
- SentinelOne (S): Buy – Target price $24.83 (37% upside).
- CrowdStrike (CRWD): Hold – Wait for a pullback to ~$100/share.

In cybersecurity's next chapter, the underdog might just steal the spotlight.