OKTA vs. S: Which Enterprise Cybersecurity Stock Is the Better Buy?

Okta OKTA and SentinelOne S are key providers of security software solutions for enterprises. OKTA offers cloud-based identity solutions that allow customers to integrate with nearly any application, service, or cloud that they choose through its secure, reliable, and scalable platforms: the Okta Platform and the Auth0 Platform. Meanwhile, SentinelOne focuses on endpoint security, cloud security and threat detection through its Singularity Platform that leverages a unified security data lake and Purple AI, its Generative AI (GenAI) engine. So, Okta or SentinelOne, which is leading the charge? Let’s find out.The Case for OKTA StockOkta is benefiting from steady demand for identity security, an expanding installed base and rising attach of newer products such as Identity Governance, Privileged Access and posture and threat capabilities. The company’s expanding portfolio across governance, privileged access, device access, authorization, posture management and AI-driven threat protection continues to support customer wins and cross-sell.  In the first quarter of fiscal 2027, Okta reported more than 20,000 total customers and 5,180 customers now spending more than $100,000 annually. In the reported quarter, new products contributed about 25% of bookings, with Identity Governance leading adoption, followed by growing traction in Privileged Access and other security offerings. OKTA benefits from its installed base of more than 20,000 customers, broad identity portfolio and vendor-neutral position across AI ecosystems. Okta’s expanding partner base now includes OpenAI, Anthropic, Google, Amazon, ServiceNow and others. This is allowing customers to secure agents across multiple environments.The company expects AI-driven identity security to become a key long-term growth opportunity. It expects revenues to increase 9-10% in fiscal 2027, supported by continued adoption of newer products, expanding enterprise relationships and stronger partner contributions.The Case for S StockSentinelOne is benefiting from the robust and growing demand for cybersecurity solutions, particularly as enterprises face an increasingly complex threat landscape, driven by AI-powered attacks. The company’s Singularity platform provides AI-native security across endpoints, cloud, identity, data and AI through a single interface. In the first quarter of fiscal 2027, AI security ARR nearly doubled, and for the first time, non-endpoint solutions approached 50% of total ARR.The company’s automation-led approach is driving enterprise adoption, while emerging solutions now account for about half of ARR. Product advances in Purple AI, Prompt Security, AI SIEM, cloud security and Hyperautomation support a broader platform story. As of April 30, 2026, annualized recurring revenues (ARR) grew 23% year over year to $1.16 billion. Customers with more than $100,000 in ARR increased 17% year over year to 1,702, driven by continued momentum in enterprise expansion and strong adoption of the company’s platform solutions.SentinelOne’s expanding portfolio has been noteworthy. S recently announced the general availability of Purple AI Agentic Investigation and introduced Singularity Credits, enabling autonomous “zero-click” threat investigations that detect, investigate, verify, and respond to threats at machine speed while maintaining analyst oversight and control.The company’s sustained demand for advanced cybersecurity, especially AI-native solutions, suggests further upside for SentinelOne. For the second quarter of fiscal 2027, SentinelOne expects revenues between $289 million and $291 million, representing 20% year-over-year growth at the midpoint.Price Performance and Valuation of OKTA and SIn the year-to-date period, shares of OKTA and S have gained 43.7% and 6.1%, respectively. The outperformance in OKTA can be attributed to strong enterprise demand, expanding AI-driven identity solutions and strategic partnerships.Despite SentinelOne’s expanding portfolio, the company is suffering from ongoing GAAP losses, lower gross margin, restructuring actions, intense competition and macro uncertainty that can affect deal timing. Federal spending and policy risks are concerning.OKTA and S Stock PerformanceImage Source: Zacks Investment ResearchValuation-wise, OKTA and S shares are currently overvalued, as suggested by a Value Score of F.In terms of forward 12-month Price/Sales, OKTA shares are trading at 6.5X, higher than SentinelOne’s 4.24X.OKTA and S ValuationImage Source: Zacks Investment ResearchHow Do Earnings Estimates Compare for OKTA & S?The Zacks Consensus Estimate for OKTA’s fiscal 2027 earnings is pegged at $3.83 per share, which has increased 1% over the past 30 days. This indicates a 9.43% increase year over year.Okta, Inc. Price and Consensus Okta, Inc. price-consensus-chart | Okta, Inc. QuoteThe Zacks Consensus Estimate for SentinelOne’s fiscal 2027 earnings is pegged at 36 cents per share, which has increased by a penny over the past 30 days. This indicates an 80% increase year over year.SentinelOne, Inc. Price and Consensus SentinelOne, Inc. price-consensus-chart | SentinelOne, Inc. QuoteOkta earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 7.65%. SentinelOne earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 47.5%. The average surprise of SentinelOne is higher than that of Okta.ConclusionWhile both Okta and SentinelOne are well-positioned to benefit from rising enterprise cybersecurity spending and AI-driven security demand, SentinelOne stands out with its faster revenue growth, rapidly expanding AI-native platform and strong momentum in non-endpoint security solutions.Despite OKTA’s expanding product portfolio and solid earnings outlook, the company is facing competitive pressure from large platform vendors, and specialists remain intense, sales cycles can stay elongated in a cautious IT spend environment, and past security incidents still weigh on customer confidence.Currently, SentinelOne carries a Zacks Rank #2 (Buy), making the stock a stronger pick than OKTA, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks