Driven by the world’s rapid digitalization, it’s no surprise that the demand for cybersecurity solutions has increased given that these solutions are critical in keeping the digital world safe from hackers and other bad actors. So, we think established cybersecurity providers Check (CHKP) and FireEye (NASDAQ:FEYE) should benefit from the industry tailwinds. But which of these two stocks is a better buy now? Let’s find out.Check Point Software Technologies Ltd. (NASDAQ:CHKP) and FireEye, Inc. (FEYE) are established players in the cybersecurity space. Headquartered in Tel Aviv, Israel, CHKP is a leading provider of cyber security solutions to governments and corporate enterprises worldwide. The company offers a wide range of solutions, which include network security, endpoint security, data security, and management solutions. California-based FEYE provides cybersecurity solutions and services. It offers the Helix Security Platform, Mandiant security instrumentation, as well as endpoint, network, and email security products.
Because the continued adoption of hybrid working models is increasing the risk of cyberattacks, business leaders worldwide are embracing the need for robust cybersecurity measures. According to Grand View Research, the global cybersecurity market is expected to grow at a 10.9% CAGR between 2021- 2028. So, it’s no surprise that investors are betting on several cybersecurity stocks to capitalize on the growing demand. Investors' interest in the cybersecurity space is evidenced by First Trust NASDAQ Cybersecurity ETF’s (CIBR) 32.7% gains over the past nine months.
While FEYE has gained 56.8% over the past nine months, CHKP has returned 1.3%. However, in terms of past three months’ performance, CHKP is a winner with 5.8% returns versus FEYE’s 5.2%. But which of these two stocks is a better pick now? Let's find out.