The Cheapest Way to Invest in Cybersecurity: Palo Alto Networks or Cyberark?

Which Nasdaq Sell-Off Stock is Cheaper: Palo Alto Networks or Okta?

The tech-heavy Nasdaq Composite has been under pressure lately, with many growth stocks taking a hit. If you're looking to buy in on the dip, you're probably wondering which of these two Palo Alto-based companies, Palo Alto Networks (PANW) and Okta (OKTA), is the cheaper option.

Palo Alto Networks is a leader in the cybersecurity space, providing next-generation firewalls and other security solutions to enterprises and governments. The company has a market capitalization of around $43 billion and has a history of delivering strong earnings growth.

Okta, on the other hand, is a cloud-based identity and access management company. It has a market capitalization of around $15 billion and has been growing rapidly, with a focus on the cloud and identity-driven security.

In terms of valuation, Palo Alto Networks is currently trading at around 43 times its trailing 12-month earnings, while Okta is trading at around 134 times its trailing 12-month earnings. That's a significant difference, and it's likely that Okta's valuation will come back down to earth as the company matures and its growth slows.

However, it's also worth noting that Palo Alto Networks has a more established business model and a longer history of delivering profits, which could make it a more attractive option for long-term investors. On the other hand, Okta has a lot of growth potential and is still in the early stages of its journey, which could make it a more appealing option for those looking for a growth stock.

Ultimately, the choice between Palo Alto Networks and Okta will depend on your individual investment goals and risk tolerance. If you're looking for a more established company with a strong track record of delivering profits, Palo Alto Networks might be the better option. But if you're looking for a growth stock with a lot of potential, Okta could be the way to go.