UiPath vs. SentinelOne: Which Technology Stock Is a Better Buy for 2027?
As artificial intelligence reshapes the enterprise landscape, investors are weighing the merits of UiPath (PATH -2.84%) and SentinelOne (S -7.91%) to determine which company offers a more compelling path toward 2027.
UiPath focuses on business orchestration through automation, while SentinelOne secures digital environments with an AI-driven platform. Both companies occupy critical niches within the enterprise software market, yet they offer distinct financial profiles. This comparison explores their different approaches to growth, profitability, and market valuation.
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PATH & S: Performance Comparison
Key Financial Metrics
PATH – UiPath
$13.34
–2.84% (-$0.39)
S – SentinelOne
$23.16
–7.91% (-$1.99)
Market Cap
$7.2B
52wk Range
$9.20 – $19.84
Gross Margin
82.14%
P/E Ratio
20.43
EPS (TTM)
$0.67
Market Cap
$8.8B
52wk Range
$11.81 – $26.50
Gross Margin
72.31%
P/E Ratio
-24.90
EPS (TTM)
-$1.01
PATH – UiPath
$13.34
–2.84% (-$0.39)
Market Cap
$7.2B
52wk Range
$9.20 – $19.84
Gross Margin
82.14%
P/E Ratio
20.43
EPS (TTM)
$0.67
S – SentinelOne
$23.16
–7.91% (-$1.99)
Market Cap
$8.8B
52wk Range
$11.81 – $26.50
Gross Margin
72.31%
P/E Ratio
-24.90
EPS (TTM)
-$1.01
The case for UiPath
UiPath provides a business orchestration and automation platform that coordinates agents, robots, and people. It helps organizations streamline complex workflows across various industries, maintaining a strong presence among tech stocks. The company maintains a robust distribution model through strategic alliances with partners like Snowflake (SNOW -5.03%) and BDO USA.
In its latest annual report for FY 2026, revenue reached nearly $1.6 billion, representing growth of approximately 12.7% over the prior year. The company reported net income of roughly $282.3 million and a net margin of close to 17.5%. This performance marks a significant improvement from the previous fiscal year when the company reported a net loss.
As of its January 2026 balance sheet, the debt-to-equity ratio was 0.0x, and the current ratio of 2.5x indicates the company can cover short-term liabilities with short-term assets. Free cash flow reached nearly $352.2 million, which represents cash generated from operations minus capital expenditures. Note that stock-based compensation represented roughly 78.3% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for SentinelOne
SentinelOne provides an AI-powered cybersecurity platform that detects and responds to attacks across endpoints, cloud workloads, and identities. Its platform is used globally by enterprises and government agencies, relying on channel partners like N-able (NABL -2.32%) and Lenovo to reach customers. The company continues to expand its reach with over 1,715 customers generating at least $100,000 in annual recurring revenue.
In its latest annual report for FY 2026, revenue reached nearly $1.0 billion, an increase of roughly 21.9% compared to the previous year. Despite this growth, the company reported a net loss of approximately $450.7 million and a net margin of roughly -45%. The widening net loss highlights the costs associated with scaling its infrastructure and investing in new AI initiatives.
On its January 2026 balance sheet, the debt-to-equity ratio was 0.0x, while the current ratio of 1.4x measures the company’s ability to meet short-term obligations with current assets. Free cash flow reached nearly $75.9 million, calculated as cash from operations minus capital expenditures. Note that stock-based compensation represented roughly 388.4% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.
Risk profile comparison
UiPath faces significant risks related to its heavy reliance on a single automation platform and intense competition from larger enterprise software vendors. The company also navigates potential regulatory challenges regarding AI ethics and a concentration where its top 10% of customers provide a substantial portion of revenue. Geopolitical factors also play a role, as international operations accounted for close to 54% of its revenue in FY 2026.
SentinelOne operates in a highly competitive cybersecurity market and has a history of net losses that may make forecasting future results difficult. The company relies on the efficacy of its AI initiatives and faces risks related to potential security breaches, including those affecting its cloud provider, Amazon (AMZN +2.20%). Furthermore, evolving data protection laws and the EU AI Act impose significant regulatory compliance obligations on its global operations.
Valuation comparison
UiPath appears significantly cheaper than SentinelOne across both earnings and sales multiples, suggesting a more conservative valuation for the established automation leader.
MetricUiPathSentinelOneForward P/E17.4×78.7xP/S ratio4.2×7.8x
Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy for 2027?
I’d go with SentinelOne. What I like is that it is growing much faster than UiPath while becoming more profitable, and its products cover both AI-powered security and protection for AI systems themselves. In Q2 fiscal 2027, SentinelOne’s revenue beat its own guidance and management raised its full-year outlook. Management expects revenue to keep climbing when it reports in early December.
To give UiPath its due, it has been GAAP profitable for four straight quarters, a milestone SentinelOne has not reached. The catch is that UiPath’s annual recurring revenue is growing at roughly half the pace of SentinelOne’s, so it is entering 2027 with less momentum.
For anyone building a portfolio with a long time horizon, owning a security platform that grows alongside AI adoption is a straightforward way to benefit as more companies put AI to work. Each new AI system a customer deploys is one more thing that needs protecting.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.