The demand for advanced cybersecurity solutions is expected to increase with the growing number of cybercrimes in the digital era. As a result, Radware (NASDAQ:RDWR) and SecureWorks (NASDAQ:SCWX) should benefit in the near term. But which of these stocks is a better buy now? Read more to find out.Tel Aviv, Israel-based cybersecurity and application delivery solutions provider Radware Ltd.’s (RDWR) solutions integrate distributed denial of service protection, web application firewalls, and application delivery controller technologies to enable its customers to provide cyber-attack mitigation solutions for a range of applications. In comparison, SecureWorks Corp. (SCWX) in Atlanta, Ga. provides technology-driven information security solutions, such as software-as-a-service solutions, managed security services, and professional services to protect its customers.
Increasing dependence on cloud computing and digital means of working have propelled a rapid rise in the number of cybercrimes of late, such as the recent and infamous Colonial Pipeline ransomware attack and the SolarWinds cyber hack, which occurred last December. In response, President Biden signed a National Security Memorandum this week to help the nation develop advanced cybersecurity solutions. Also, according to a Research and Markets report, the worldwide cybersecurity industry is expected to grow at a 9.7% CAGR between 2021 - 2026.
RDWR has gained 3.8% over the past month, while SCWX returned 2.2%. However, SCWX’s 57.5% gains over the past three months are significantly higher than RDWR’s 13.7% returns. Furthermore, in terms of their past nine month’s performance, SCWX is the clear winner with 104.9% gains versus RDWR’s 40.5%.