In today’s technology-driven landscape, choosing the right investment can be a daunting task. This analysis compares two prominent players in the Software – Infrastructure sector: Okta, Inc. (OKTA) and Rubrik, Inc. (RBRK). Both companies are at the forefront of innovation, focusing on identity and data security solutions, respectively. With overlapping markets and a shared commitment to enhancing enterprise security, I invite you to join me as we uncover which of these companies presents the most compelling opportunity for investors.
Table of contents
Company Overview
Okta, Inc. Overview
Okta, Inc. is a leader in identity management solutions, catering to enterprises, small and medium-sized businesses, and various organizations globally. Headquartered in San Francisco, the company’s mission is to provide secure and seamless access to applications and data for its users. The Okta Identity Cloud offers an array of services, including Single Sign-On, Adaptive Multi-Factor Authentication, and Lifecycle Management, ensuring comprehensive identity security. With a market capitalization of approximately $13.53B and a workforce of around 5,914 employees, Okta continues to innovate in the rapidly evolving tech landscape, contributing significantly to the security of cloud infrastructures.
Rubrik, Inc. Overview
Rubrik, Inc., based in Palo Alto, specializes in data security solutions, offering comprehensive services that protect critical data across various platforms. Founded in 2013, Rubrik’s mission is to safeguard data for organizations in diverse sectors including healthcare, finance, and technology. Their portfolio includes enterprise data protection, cyber recovery solutions, and data threat analytics, positioning them as vital players in the cybersecurity space. With a market cap of approximately $13.91B and around 3,200 employees, Rubrik is well-equipped to address the growing demands for data security in an increasingly digital world.
Key similarities between Okta and Rubrik lie in their focus on technology and infrastructure software solutions, both addressing critical security needs. However, while Okta emphasizes identity management, Rubrik concentrates on comprehensive data protection, highlighting their distinct approaches within the cybersecurity ecosystem.
Income Statement Comparison
The following table presents a comparative analysis of the income statements for Okta, Inc. and Rubrik, Inc. for the most recent fiscal year, highlighting key financial metrics.
| Metric | Okta, Inc. | Rubrik, Inc. |
|---|---|---|
| Revenue | 2.61B | 886M |
| EBITDA | 139M | -1.08B |
| EBIT | 51M | -1.11B |
| Net Income | 28M | -1.15B |
| EPS | 0.17 | -7.48 |
Interpretation of Income Statement
In 2025, Okta, Inc. demonstrated a significant increase in revenue to 2.61B, reflecting a positive growth trend from 2.26B in the prior year, suggesting effective market positioning. Conversely, Rubrik, Inc. saw revenue growth to 886M from 628M, yet it incurred substantial losses, with net income at -1.15B, indicating challenges in cost management and profitability. The contrasting performances highlight Okta’s improved operational efficiency, while Rubrik’s negative margins signal potential risks for investors. Caution is advised when considering investments in these companies, especially in light of Rubrik’s substantial financial losses.
Financial Ratios Comparison
In this section, I will compare the most recent financial ratios for Okta, Inc. (OKTA) and Rubrik, Inc. (RBRK) to help you assess their performance and financial health.
| Metric | OKTA | RBRK |
|---|---|---|
| ROE | 0.44% | -2.09% |
| ROIC | -0.61% | -2.36% |
| P/E | -38.10 | -18.38 |
| P/B | 2.49 | -20.42 |
| Current Ratio | 1.35 | 1.13 |
| Quick Ratio | 1.35 | 1.13 |
| D/E | 0.15 | -0.60 |
| Debt-to-Assets | 0.10 | 0.23 |
| Interest Coverage | -14.8 | -27.49 |
| Asset Turnover | 0.28 | 0.62 |
| Fixed Asset Turnover | 22.31 | 16.67 |
| Payout Ratio | 0% | 0% |
| Dividend Yield | 0% | 0% |
Interpretation of Financial Ratios
The analysis indicates that Okta has a marginally positive Return on Equity (ROE) but is struggling with profitability, evidenced by its negative P/E and ROIC. Rubrik demonstrates a significantly weaker financial profile, with negative values in key metrics, including ROE, ROIC, and interest coverage. Both companies exhibit a lack of dividends, reflecting their reinvestment strategies or financial challenges. Investors should approach with caution, as the risks associated with these firms are prominent.
Dividend and Shareholder Returns
Both Okta, Inc. (OKTA) and Rubrik, Inc. (RBRK) do not pay dividends, primarily due to ongoing investments in growth and development. Okta’s negative net income and high valuation metrics suggest a focus on reinvestment. Similarly, Rubrik’s significant losses and negative equity indicate a high growth phase. Both companies engage in share buybacks, yet this strategy must be evaluated against their financial health. Overall, these approaches may support long-term value creation if managed prudently.
Strategic Positioning
In the software infrastructure market, Okta, Inc. (OKTA) and Rubrik, Inc. (RBRK) are key players with substantial market shares. OKTA focuses on identity solutions, leveraging its Okta Identity Cloud to secure user access, which positions it well against competitive pressures and technological disruptions. Meanwhile, RBRK specializes in data security solutions, addressing increasing cyber threats. Both companies are under pressure to innovate continuously as the market evolves, ensuring they remain relevant in a rapidly changing landscape.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Okta, Inc. (OKTA) and Rubrik, Inc. (RBRK) over the past year, highlighting their key price dynamics and trading trends.
Trend Analysis
Okta, Inc. (OKTA) Over the past year, OKTA’s stock has experienced a significant decline, with a percentage change of -11.01%. This indicates a bearish trend, characterized by a deceleration in price movement. The stock reached a high of 127.3 and a low of 72.24 during this period. The standard deviation of 11.44 suggests a moderate level of volatility in its price movements.
Rubrik, Inc. (RBRK) Conversely, RBRK has shown a remarkable performance, with a percentage change of +86.74% over the past year, indicating a bullish trend. However, it is noteworthy that the recent trend has seen a decline of -21.96%, reflecting deceleration. The stock’s highest price was 97.91, while the lowest was 28.65, and it exhibited a standard deviation of 21.89, indicating higher volatility compared to OKTA.
In summary, while OKTA is currently in a bearish trend with deceleration, RBRK remains overall bullish despite recent fluctuations.
Analyst Opinions
Recent recommendations for Okta, Inc. (OKTA) indicate a “Buy” rating from several analysts, highlighting its strong discounted cash flow score (5) and overall solid performance metrics. Analysts believe that OKTA’s robust growth potential justifies a positive outlook. In contrast, Rubrik, Inc. (RBRK) has received a “Hold” rating, with concerns over its lower scores in discounted cash flow and profitability metrics. The consensus for OKTA is a buy, while RBRK leans towards caution, suggesting potential investors should tread carefully.
Stock Grades
Recent evaluations from reputable grading companies provide valuable insights into the performance outlook of two notable stocks, Okta, Inc. (OKTA) and Rubrik, Inc. (RBRK).
Okta, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Equal Weight | 2025-11-18 |
| Mizuho | maintain | Outperform | 2025-11-17 |
| Baird | maintain | Outperform | 2025-09-29 |
| DA Davidson | maintain | Buy | 2025-09-26 |
| BTIG | maintain | Buy | 2025-09-26 |
| RBC Capital | maintain | Outperform | 2025-09-26 |
| Barclays | maintain | Equal Weight | 2025-08-27 |
| Baird | maintain | Outperform | 2025-08-27 |
| BMO Capital | maintain | Market Perform | 2025-08-27 |
| Scotiabank | maintain | Sector Perform | 2025-08-27 |
Rubrik, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | upgrade | Outperform | 2025-11-17 |
| CIBC | maintain | Outperform | 2025-09-11 |
| Wedbush | maintain | Outperform | 2025-09-11 |
| Keybanc | maintain | Overweight | 2025-09-10 |
| Cantor Fitzgerald | maintain | Overweight | 2025-09-10 |
| Rosenblatt | maintain | Buy | 2025-09-10 |
| Barclays | maintain | Overweight | 2025-09-10 |
| Wedbush | maintain | Outperform | 2025-06-12 |
| CIBC | maintain | Outperform | 2025-06-09 |
| Wedbush | maintain | Outperform | 2025-06-06 |
In summary, both stocks exhibit a generally stable trend, with multiple grades maintaining their previous evaluations. Notably, Rubrik, Inc. received an upgrade from Mizuho, indicating a positive shift in expectations for this company.
Target Prices
The current consensus target prices from analysts for the two companies are as follows:
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Okta, Inc. | 135 | 60 | 119.3 |
| Rubrik, Inc. | 50 | 38 | 45.5 |
Analysts expect Okta, Inc. to reach a consensus target price of 119.3, significantly higher than its current price of 80.32. For Rubrik, Inc., the consensus target of 45.5 is also above its current price of 70.455, indicating positive sentiment.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Okta, Inc. and Rubrik, Inc. based on recent financial data.
| Criterion | Okta, Inc. (OKTA) | Rubrik, Inc. (RBRK) |
|---|---|---|
| Diversification | Moderate | Low |
| Profitability | Low | Low |
| Innovation | High | Moderate |
| Global presence | Strong | Moderate |
| Market Share | Growing | Emerging |
| Debt level | Low | High |
Key takeaways from the table indicate that Okta, Inc. shows stronger innovation and global presence, while Rubrik, Inc. struggles with a higher debt level and lower diversification. Investors should weigh these factors carefully before making investment decisions.
Risk Analysis
In the following table, I will outline the key risks associated with Okta, Inc. (OKTA) and Rubrik, Inc. (RBRK) based on the most recent data.
| Metric | Okta, Inc. (OKTA) | Rubrik, Inc. (RBRK) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Low |
| Geopolitical Risk | Moderate | Moderate |
Both companies face significant market risk, particularly in the volatile tech sector. Okta’s higher regulatory risk stems from its identity management services, while Rubrik’s operational challenges are notable given its data security focus. Investors should remain vigilant regarding these risks, as they can significantly impact stock performance.
Which one to choose?
When comparing Okta, Inc. (OKTA) and Rubrik, Inc. (RBRK), Okta shows stronger fundamentals. With a market cap of approximately $15.98B, Okta has a gross profit margin of 76.32% and a net income of $28M as of January 2025. In contrast, Rubrik’s market cap stands at roughly $11.31B, but it reports a negative net income of $1.15B with a lower gross profit margin of 70.02%.
Analysts rate Okta a “B” with an overall score of 3, indicating a more favorable outlook than Rubrik’s “C” rating. Though Okta’s stock trend is bearish, it may appeal to long-term investors. Conversely, Rubrik has recently exhibited a bullish trend, albeit with substantial risks tied to its financial instability and high operational expenses.
Investors focused on growth may prefer Okta, while those prioritizing potential recovery and high volatility may consider Rubrik. However, both companies face risks related to competition and valuation.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Okta, Inc. and Rubrik, Inc. to enhance your investment decisions:
