PANW vs. CYBR: Which Cybersecurity Stock is the Better Buy Now?

Core Insights - Palo Alto Networks (PANW) and CyberArk Software (CYBR) are prominent U.S.-based cybersecurity firms focusing on protecting enterprises from digital threats, with PANW specializing in next-gen firewalls and cloud security, while CYBR leads in identity security and privileged access management [1][2] Industry Overview - The cybersecurity market is expected to grow at a CAGR of 12.63% from 2025 to 2030, driven by the rise of complex cyber attacks [2] CyberArk's Position - CyberArk is a leader in identity security, aligning its products with industry trends such as privileged access management and Zero Trust capabilities [4] - Recent acquisitions, including Venafi for $1.54 billion and Zilla Security for $165 million, have enhanced CyberArk's capabilities in machine identity management and broadened its addressable market [5] - CyberArk is advancing in agentic AI with its Secure AI Agent solution, expected to be available to customers later this year [6] - In Q1 2025, CyberArk reported a 43.4% increase in sales and a 30.7% rise in non-GAAP EPS, indicating strong financial growth [7] Palo Alto Networks' Position - PANW is recognized for its comprehensive cybersecurity solutions, including network security and cloud protection [8] - The company is focusing on areas like Zero Trust and private 5G security to support long-term growth [9] - PANW has upgraded its Prisma Cloud platform with generative AI capabilities, enhancing user interaction [10] - However, PANW faces challenges such as shortened contract durations and a slowdown in transitioning to cloud-based platforms, leading to a deceleration in revenue growth [12][13] Financial Comparisons - The Zacks Consensus Estimate for CyberArk's 2025 sales and EPS indicates year-over-year growth of 31.85% and 25.05%, respectively, while PANW's estimates are significantly lower at 14.4% and 15.14% [14] - Year-to-date, CyberArk shares have increased by 17.8%, compared to an 8.5% rise in Palo Alto Networks shares [17] - PANW trades at a forward sales multiple of 12.6X, while CYBR is at 13.71X, reflecting higher growth expectations for CyberArk despite its higher valuation [20] Conclusion - CyberArk is currently viewed as a more attractive investment due to its robust growth, strategic acquisitions, and focus on emerging threats, while PANW is experiencing near-term challenges [22][23]