Rapid digitization and increasing online activities have increased users’ exposure to data breaches and large-scale cyberattacks. This has fostered a rising need for advanced cybersecurity solutions, and the consequent investments in the sector are driving the cybersecurity industry’s growth. This backdrop has been benefiting Rapid7 (NASDAQ:RPD) and Qualys (NASDAQ:QLYS). But which of these stocks is a better buy now? Read more to find out.Rapid7, Inc. (RPD) and Qualys, Inc. (QLYS) are two prominent players in the cybersecurity space. Boston-based RPD focuses on advancing security data with visibility, analytics, and automation through its Insight platform. It also offers certification consultation, cybersecurity audit, technical assessment, and other security services. In comparison, QLYS, in Redwood (NYSE:RWT) City, Calif., operates Qualys Cloud Platform, which delivers IT security risk and compliance management solutions that enable organizations to identify security risks to their IT infrastructures and prevent cyberattacks. Both companies serve technology, financial services, healthcare, media, manufacturing, retail, education, and transportation industries, along with governmental agencies, through direct sales forces and a network of channel partners.
The penetration tools and deepfakes in cyberattacks and data breaches to gain access to sensitive user data and networks have been heightening the demand for advanced and cost-efficient cybersecurity solutions from governments and enterprises worldwide.
Investor interest in this space is evident in the Global X Cybersecurity ETF’s (BUG) 13% gains versus the SPDR S&P 500 Trust ETF’s (SPY) 7.1% returns over the past month. The global cybersecurity market is expected to grow at a 12% CAGR to $366.10 billion by 2028. So, both RPD and QLYS should benefit.