CrowdStrike CRWD and Check Point Software Technologies CHKP are both at the forefront of the cybersecurity space, playing key roles in guarding organizations from extensive cyberattacks. Both players are taking active roles in enabling enterprises against cloud and endpoint security.

CrowdStrike and Check Point are riding the key industry trends, driven by the mounting incidents of credential theft, remote desktop protocol breaches and social engineering-based strikes by the malicious actors. Per a Mordor Intelligence report, the cybersecurity space is expected to witness a CAGR of 12.63% from 2025 to 2030.

With this strong growth forecast for the cybersecurity market, the question remains: Which stock has more upside potential? Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.

The Case for CrowdStrike

CrowdStrike provides its cybersecurity services mainly through its Falcon platform, which is renowned to be the industry’s first multi-tenant, cloud native, intelligent security solution that secures workloads across on-premise, cloud-based and virtualized environments running on a several endpoints, such as desktops, laptops, servers, virtual machines and IoT devices.

CRWD’s cloud-based Falcon platform currently provides 29 cloud modules via a SaaS subscription model that is categorised under three categories,  Endpoint Security, Security & IT Operations, and Threat Intelligence. The share of subscription-based sales to CrowdStrike’s total revenues grew from 72% in fiscal 2017 to 95% in fiscal 2025.

Nevertheless, CrowdStrike is facing several challenges related to customers’ pessimism since the global IT outage incident on July 19, 2024. The company has been deploying the Customer Commitment Package to retain its customers, which included product additions and discounts, hence thinning its profitability.

Regardless of all these measures, the company’s upsell into existing customers showed signs of slump and the churn rate remained moderate. These factors are likely to weigh on CRWD’s profitability in the near-term. The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings indicates a year-over-year decline of 12.5%.Zacks Investment Research

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The Case of Check Point

Check Point provides several software and combined hardware solutions focused at safeguarding information technology infrastructure. The company’s solutions can either be combined with the operating system, a computer device, a server or a virtual desktop to employ network and gateway security and end-to-end data security.

Story Continues

Check Point is experiencing growth in its revenues from the continuous adoption of its cloud solutions and a robust demand for Quantum Force, Harmony Email and Infinity platforms. Rising demand for network security gateways to ensure greater capacities is aiding in the adoption of Check Point’s remote access VPN solutions.

Check Point is also increasing its revenues by implementing subscription-based solutions and services. The subscription-based model ensures stable recurring revenues with a high gross margin. In the first quarter of 2025, Check Point’s security subscription revenues were $291 million, which increased 10% year over year

Check Point’s 2025 earnings have been pegged at $9.91 per share, indicating year-over-year growth of 8.2%.Zacks Investment Research

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Stock Price Performance and Valuation of CRWD and CHKP

Over the past year, Check Point has returned 45.6%, way more than CrowdStrike’s gain of 28.7%.Zacks Investment Research

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Check Point is trading at a forward sales multiple of 8.69X, way below the Zacks Security industry’s 13.53X, while CrowdStrike is trading above the Security industry at a forward sales multiple of 20.14X. Check Point’s lower valuation than CrowdStrike, supported by its strong fundamentals, makes it more attractive.Zacks Investment Research

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Conclusion: Check Point vs CrowdStrike Stock

While CrowdStrike is still navigating the headwinds emerging from reputational damage caused by the global IT outage and shrinking profit margin, Check Point is gaining strong traction in its Quantum Force, Harmony Email and Infinity platforms.

Currently, Check Point carries a Zacks Rank #3 (Hold), making the stock a stronger pick compared with CrowdStrike, which has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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