In the fast-evolving cybersecurity sector, CrowdStrike Holdings, Inc. and Gen Digital Inc. stand out as key players shaping the industry’s future. Both companies operate in software infrastructure, focusing on protecting users from digital threats through innovative solutions. CrowdStrike emphasizes cloud-based endpoint security, while Gen Digital offers comprehensive consumer cyber safety products. This analysis will help you decide which company presents the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between CrowdStrike Holdings, Inc. and Gen Digital Inc. by providing an overview of these two companies and their main differences.
CrowdStrike Overview
CrowdStrike Holdings, Inc. focuses on cloud-delivered protection across endpoints, cloud workloads, identity, and data. It offers threat intelligence, managed security services, IT operations management, and Zero Trust identity protection. Primarily selling subscriptions to its Falcon platform, CrowdStrike operates globally through direct sales and channel partners. Founded in 2011 and based in Austin, Texas, it is a significant player in software infrastructure with a market cap of $114B.
Gen Digital Overview
Gen Digital Inc. provides comprehensive cyber safety solutions for consumers worldwide, including Norton 360 and LifeLock identity theft protection. Its services cover malware, ransomware, VPN security, privacy monitoring, and online reputation management. Established in 1982 and headquartered in Tempe, Arizona, Gen Digital markets through retailers, telecom providers, and e-commerce. It operates with a market cap of $16B and employs 3,400 people.
Key similarities and differences
Both companies operate in the software infrastructure sector focusing on cybersecurity but target different customer bases. CrowdStrike emphasizes enterprise endpoint and cloud protection with a subscription-based Falcon platform, while Gen Digital focuses on consumer cyber safety products and identity protection. CrowdStrike is larger by market cap and workforce, reflecting its enterprise focus, whereas Gen Digital prioritizes broad consumer coverage through diverse distribution channels.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for CrowdStrike Holdings, Inc. and Gen Digital Inc. for the fiscal year 2025.
| Metric | CrowdStrike Holdings, Inc. | Gen Digital Inc. |
|---|---|---|
| Market Cap | 114.4B | 16.1B |
| Revenue | 3.95B | 3.94B |
| EBITDA | 295M | 2.03B |
| EBIT | 81M | 1.61B |
| Net Income | -19.3M | 643M |
| EPS | -0.08 | 1.04 |
| Fiscal Year | 2025 | 2025 |
Income Statement Interpretations
CrowdStrike Holdings, Inc.
From 2021 to 2025, CrowdStrike’s revenue demonstrated strong growth, rising over 350% to reach $3.95B in 2025. Gross margins remained favorable at 74.92%, reflecting efficiency in cost of revenue. However, the net income turned negative in 2025 at -$19M, reflecting margin pressures and a decline in EBIT margin to a neutral 2.04%. The latest year showed slowed profitability despite robust revenue gains.
Gen Digital Inc.
Gen Digital exhibited steady revenue growth of 54.25% over the 2021–2025 period, reaching $3.94B in 2025. The company maintained high gross margins of 80.28% and strong EBIT margins at 40.84%. Net income was solid at $643M with a net margin of 16.34%. Recent performance showed moderate revenue growth of 3.55% and improved EBIT by 44%, signaling stable profitability and efficient cost management.
Which one has the stronger fundamentals?
Gen Digital presents stronger fundamentals with higher and more stable margins, solid net income, and favorable EBIT growth. CrowdStrike shows impressive revenue expansion but struggles with profitability and margin contraction, evidenced by recent negative net income and EBIT decline. Both companies have favorable overall income evaluations, but Gen Digital’s consistent profitability and margin strength stand out.
Financial Ratios Comparison
This table presents the most recent key financial ratios for CrowdStrike Holdings, Inc. and Gen Digital Inc., facilitating a straightforward comparison of their fiscal year 2025 performances.
| Ratios | CrowdStrike Holdings, Inc. (CRWD) | Gen Digital Inc. (GEN) |
|---|---|---|
| ROE | -0.59% | 28.34% |
| ROIC | 0.70% | 7.77% |
| P/E | -5056 | 25.36 |
| P/B | 29.71 | 7.19 |
| Current Ratio | 1.67 | 0.51 |
| Quick Ratio | 1.67 | 0.51 |
| D/E (Debt-to-Equity) | 0.24 | 3.66 |
| Debt-to-Assets | 9.07% | 53.66% |
| Interest Coverage | -4.58 | 2.79 |
| Asset Turnover | 0.45 | 0.25 |
| Fixed Asset Turnover | 4.76 | 36.10 |
| Payout Ratio | 0 | 48.68% |
| Dividend Yield | 0% | 1.92% |
Interpretation of the Ratios
CrowdStrike Holdings, Inc.
CrowdStrike shows a mixed ratio profile with strengths in liquidity (current and quick ratios at 1.67) and low leverage (debt to equity 0.24), but weaknesses in profitability metrics such as negative net margin (-0.49%) and return on equity (-0.59%). Asset turnover is low at 0.45, raising efficiency concerns. The company does not pay dividends, likely focusing on reinvestment and growth.
Gen Digital Inc.
Gen Digital presents strong profitability with a net margin of 16.34% and return on equity at 28.34%, though burdened by high leverage (debt to equity 3.66) and poor liquidity (current ratio 0.51). Asset turnover is weak at 0.25, indicating less efficient asset use. It pays a dividend with a 1.92% yield, supported moderately by free cash flow, balancing shareholder returns and debt servicing.
Which one has the best ratios?
CrowdStrike’s ratios reflect better liquidity and lower leverage but suffer from unprofitable operations and low efficiency. Gen Digital excels in profitability but faces challenges with high debt and weak liquidity. Overall, CrowdStrike holds a neutral evaluation, while Gen Digital’s ratios are slightly unfavorable, indicating differing risk-return profiles for investors to consider.
Strategic Positioning
This section compares the strategic positioning of CrowdStrike and Gen Digital, including their market position, key segments, and exposure to technological disruption:
CrowdStrike Holdings, Inc.
- Leading cloud-delivered protection provider facing competitive pressure in cybersecurity software.
- Key segments include subscription-based Falcon platform and professional services driving growth.
- Exposed to technological disruption through cloud workloads, Zero Trust identity, and advanced threat intelligence.
Gen Digital Inc.
- Focused on consumer cyber safety with competition in identity theft and malware protection markets.
- Core consumer security, identity protection, and privacy solutions form the main business drivers.
- Faces disruption risks in evolving consumer cybersecurity and privacy technology landscapes.
CrowdStrike vs Gen Digital Positioning
CrowdStrike has a more concentrated focus on cloud-delivered security and enterprise subscriptions, while Gen Digital offers a diversified portfolio of consumer cyber safety products. CrowdStrike benefits from a scalable cloud model; Gen Digital’s broad product mix targets various consumer needs but may face complexity in integration.
Which has the best competitive advantage?
Both companies are shedding value based on ROIC versus WACC, but CrowdStrike shows a growing ROIC trend, indicating improving profitability, whereas Gen Digital’s declining ROIC suggests deteriorating profitability and a weaker competitive advantage.
Stock Comparison
Over the past 12 months, CrowdStrike Holdings, Inc. (CRWD) and Gen Digital Inc. (GEN) both exhibited bullish trends characterized by decelerating momentum, with CRWD showing higher volatility and wider price fluctuations than GEN.
Trend Analysis
CrowdStrike Holdings, Inc. (CRWD) recorded a strong bullish trend with a 45.71% price increase over the past year, though recent months show a -16.41% correction and decelerating gains, alongside high volatility (std dev 80.53).
Gen Digital Inc. (GEN) also experienced a bullish trend with a 17.89% rise over the last 12 months, accompanied by low volatility (std dev 2.59) and a nearly neutral recent trend (-0.99%) suggesting relative stability.
Comparing both, CRWD delivered the highest market performance with a significantly larger price increase despite recent pullbacks, while GEN maintained steadier, more moderate gains throughout the period.
Target Prices
Analysts present a clear consensus on target prices for both CrowdStrike Holdings, Inc. and Gen Digital Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| CrowdStrike Holdings, Inc. | 706 | 353 | 553.47 |
| Gen Digital Inc. | 32 | 31 | 31.5 |
The target consensus for CrowdStrike suggests a significant upside potential compared to its current price of 453.88 USD, indicating bullish analyst sentiment. Gen Digital’s consensus target is also above its current price of 26.1 USD, implying moderate growth expectations.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for CrowdStrike Holdings, Inc. (CRWD) and Gen Digital Inc. (GEN):
Rating Comparison
CRWD Rating
- Rating: C, considered Very Favorable overall.
- Discounted Cash Flow Score: 4, Favorable valuation.
- ROE Score: 1, Very Unfavorable efficiency.
- ROA Score: 1, Very Unfavorable asset utilization.
- Debt To Equity Score: 3, Moderate financial risk.
- Overall Score: 2, Moderate overall financial health.
GEN Rating
- Rating: B, considered Very Favorable overall.
- Discounted Cash Flow Score: 5, Very Favorable valuation.
- ROE Score: 5, Very Favorable efficiency.
- ROA Score: 3, Moderate asset utilization.
- Debt To Equity Score: 1, Very Unfavorable financial risk.
- Overall Score: 3, Moderate overall financial health.
Which one is the best rated?
Based on the provided data, GEN holds a superior rating with higher scores in discounted cash flow, ROE, and ROA, despite its less favorable debt-to-equity score. CRWD shows moderate overall scores but weaker profitability metrics.
Scores Comparison
The following table compares the Altman Z-Score and Piotroski Score for CrowdStrike (CRWD) and Gen Digital (GEN):
CRWD Scores
- Altman Z-Score: 12.38, indicating a safe zone, low bankruptcy risk.
- Piotroski Score: 4, classified as average financial strength.
GEN Scores
- Altman Z-Score: 1.25, in the distress zone, high bankruptcy risk.
- Piotroski Score: 6, classified as average financial strength.
Which company has the best scores?
Based on the provided data, CRWD has a significantly higher Altman Z-Score in the safe zone, while GEN falls in the distress zone. Both companies have average Piotroski Scores, but CRWD’s Altman Z-Score suggests stronger financial stability.
Grades Comparison
Here is a detailed comparison of the grades assigned by reputable grading companies for the two companies:
CrowdStrike Holdings, Inc. Grades
The following table summarizes recent grades and actions from verified financial institutions for CrowdStrike Holdings, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-01-13 |
| BTIG | Maintain | Buy | 2026-01-13 |
| Keybanc | Downgrade | Sector Weight | 2026-01-12 |
| Berenberg | Upgrade | Buy | 2026-01-09 |
| Stephens & Co. | Maintain | Overweight | 2025-12-18 |
| Morgan Stanley | Maintain | Equal Weight | 2025-12-18 |
| Freedom Capital Markets | Upgrade | Buy | 2025-12-11 |
| Citigroup | Maintain | Buy | 2025-12-04 |
| Goldman Sachs | Maintain | Buy | 2025-12-04 |
| Scotiabank | Maintain | Sector Outperform | 2025-12-03 |
Overall, CrowdStrike’s grades demonstrate a strong buy consensus with several upgrades and consistent buy ratings from top-tier firms, despite a minor downgrade to sector weight by Keybanc.
Gen Digital Inc. Grades
The table below presents the recent grades and actions from verified grading companies for Gen Digital Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | Maintain | Sector Perform | 2025-11-07 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-02 |
| Barclays | Maintain | Equal Weight | 2025-08-08 |
| Wells Fargo | Maintain | Overweight | 2025-08-08 |
| RBC Capital | Maintain | Sector Perform | 2025-08-08 |
| Barclays | Maintain | Equal Weight | 2025-07-14 |
| RBC Capital | Maintain | Sector Perform | 2025-05-07 |
| Morgan Stanley | Maintain | Equal Weight | 2025-04-16 |
| RBC Capital | Maintain | Sector Perform | 2025-01-31 |
Gen Digital’s grades show a stable pattern of sector perform and equal weight ratings, with moderate overweight and outperform designations, but no recent upgrades or downgrades.
Which company has the best grades?
CrowdStrike Holdings, Inc. has received generally stronger grades, including multiple buy ratings and upgrades, compared to Gen Digital Inc.’s consistent but more conservative sector perform and equal weight ratings. This difference could influence investor sentiment by reflecting higher confidence in CrowdStrike’s near-term prospects.
Strengths and Weaknesses
Below is a comparative overview of the strengths and weaknesses of CrowdStrike Holdings, Inc. (CRWD) and Gen Digital Inc. (GEN), based on their recent financial and operational data.
| Criterion | CrowdStrike Holdings, Inc. (CRWD) | Gen Digital Inc. (GEN) |
|---|---|---|
| Diversification | Moderate: Revenue mainly from Subscription and Professional Services, with strong growth in subscriptions (3.76B in 2025) | High: Diverse revenue streams including Cyber Safety (3.89B), Core Consumer Security, and Legacy products, though Legacy segment is small (50M in 2025) |
| Profitability | Weak: Negative net margin (-0.49%) and ROE (-0.59%), ROIC slightly positive but below WACC, indicating value destruction despite growth | Strong: Positive net margin (16.34%), high ROE (28.34%), ROIC above WACC but declining, indicating some profitability challenges ahead |
| Innovation | High: Rapidly growing ROIC trend (+114%), reflecting improving operational efficiency and innovation in cybersecurity | Moderate to Low: Declining ROIC trend (-50%), suggesting decreasing profitability and possibly slower innovation |
| Global presence | Strong: Well-known global cybersecurity provider with expanding subscription base | Strong: Established global footprint in consumer security and identity protection |
| Market Share | Growing: Expansion in subscription services shows increasing market capture | Large but under pressure: High revenues but shrinking profitability and financial leverage concerns |
Key takeaways: CrowdStrike shows strong growth potential and innovation but struggles with profitability and value creation. Gen Digital maintains solid profitability but faces challenges in sustaining growth and managing debt, signaling a need for cautious evaluation.
Risk Analysis
The table below summarizes key risks for CrowdStrike Holdings, Inc. (CRWD) and Gen Digital Inc. (GEN) based on the most recent 2025 data:
| Metric | CrowdStrike Holdings, Inc. (CRWD) | Gen Digital Inc. (GEN) |
|---|---|---|
| Market Risk | Beta 1.03 – moderate market volatility exposure | Beta 1.08 – slightly higher market volatility exposure |
| Debt level | Low debt/equity 0.24 – favorable leverage | High debt/equity 3.66 – unfavorable leverage and risk |
| Regulatory Risk | Moderate – operates globally with cybersecurity regulations | Moderate – privacy and data protection regulations apply |
| Operational Risk | Medium – reliance on cloud security platform performance | Medium – product and subscription service reliability risks |
| Environmental Risk | Low – technology sector with limited direct environmental impact | Low – similar limited exposure to environmental risks |
| Geopolitical Risk | Moderate – global customer base with some exposure | Moderate – international operations subject to geopolitical shifts |
In 2025, Gen Digital’s high leverage and low liquidity pose significant financial risks despite strong profitability, while CrowdStrike maintains a healthier balance sheet but faces operational challenges reflected in negative profit margins. Market volatility impacts both due to tech sector exposure. Investors should weigh Gen’s financial risk against its growth prospects and consider CrowdStrike’s operational execution risks carefully.
Which Stock to Choose?
CrowdStrike Holdings, Inc. (CRWD) shows strong revenue growth of 29.39% in 2025 and a favorable long-term net income increase of 79.2%. However, profitability ratios are mostly unfavorable, with a negative net margin of -0.49% and ROE of -0.59%. Its debt levels appear moderate and liquidity ratios are favorable, while the overall rating is very favorable but with mixed financial ratio evaluations, suggesting a neutral financial health stance.
Gen Digital Inc. (GEN) presents moderate revenue growth of 3.55% in 2025 and a solid net margin of 16.34%. Profitability ratios including ROE at 28.34% are favorable, though debt indicators are high and liquidity ratios are unfavorable. The company’s rating is very favorable overall, despite some unfavorable financial ratios, and it faces challenges with declining ROIC and distressed Altman Z-Score status.
Investors focused on growth might find CrowdStrike’s favorable income growth and improving profitability appealing despite mixed financial ratios, while those prioritizing stable profitability and strong income statement metrics could see Gen Digital as more suitable, albeit with higher leverage and liquidity concerns. The choice could depend on the investor’s risk tolerance and preference for growth versus financial stability.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of CrowdStrike Holdings, Inc. and Gen Digital Inc. to enhance your investment decisions:
