Critical Review: SoundThinking (NASDAQ:SSTI) versus SentinelOne (NYSE:S)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for SoundThinking and SentinelOne, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundThinking	1	8	0	0	1.89
SentinelOne	1	13	18	0	2.53

SoundThinking currently has a consensus price target of $8.75, suggesting a potential upside of 5.93%. SentinelOne has a consensus price target of $24.61, suggesting a potential upside of 10.93%. Given SentinelOne’s stronger consensus rating and higher probable upside, analysts plainly believe SentinelOne is more favorable than SoundThinking.

Volatility & Risk

SoundThinking has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, SentinelOne has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

60.7% of SoundThinking shares are owned by institutional investors. Comparatively, 90.9% of SentinelOne shares are owned by institutional investors. 10.9% of SoundThinking shares are owned by insiders. Comparatively, 4.3% of SentinelOne shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoundThinking	$97.96 million	1.09	-$9.42 million	($1.77)	-4.67
SentinelOne	$1.00 billion	7.71	-$450.73 million	($1.01)	-21.97

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SoundThinking	-23.50%	-27.55%	-14.90%
SentinelOne	-30.95%	-15.73%	-9.62%

Summary

SentinelOne beats SoundThinking on 9 of the 14 factors compared between the two stocks.

About SoundThinking

SoundThinking, Inc. develops public safety technology and services for law enforcement agencies and other public-sector organizations. Its offerings combine software, data and investigative tools intended to help agencies detect and respond to incidents and support their investigations. The company’s best-known product is ShotSpotter, an acoustic gunshot-detection system that uses sensors and analytics to identify and locate possible gunfire and alert public safety agencies. Its portfolio also includes tools for law-enforcement data analysis, investigative case management and resource deployment.

About SentinelOne

SentinelOne, Inc. is a cybersecurity company that develops software to help organizations detect, prevent and respond to cyber threats. Its Singularity platform uses artificial intelligence and automation to protect endpoints, cloud workloads and identities, and to support security operations. The platform includes endpoint protection and detection, cloud security, threat hunting and incident response capabilities. SentinelOne also offers security information and event management tools and Purple AI, which helps security teams investigate threats using natural-language queries.