CrowdStrike vs. Allot: Which Cybersecurity Stock Has an Edge Right Now?

Core Insights - CrowdStrike (CRWD) and Allot Inc. (ALLT) are leading companies in the cybersecurity sector, focusing on protecting organizations from cyberattacks [1][2] - The cybersecurity market is expected to grow at a CAGR of 12.28% from 2026 to 2031, driven by increasing complex cyber threats [2] Group 1: CrowdStrike Overview - CrowdStrike specializes in endpoint protection and extended detection and response through its Falcon platform, which is a cloud-native security solution [4] - The Falcon platform offers 29 cloud modules under a subscription model, with subscription sales increasing from 72% in fiscal 2017 to 95% in fiscal 2025 [5] - In Q3 of fiscal 2026, CrowdStrike's annual recurring revenues (ARR) from Falcon Flex customers reached $1.35 billion, growing over 200% year over year [6] - However, CrowdStrike's revenue growth has decelerated, with expectations of 21-22% growth for fiscal 2026, down from 29% in fiscal 2025 [7][10] Group 2: Allot Overview - Allot provides network-based cybersecurity and network intelligence solutions, primarily for telecom operators and service providers [8] - The company's Cybersecurity-as-a-Service (SECaaS) business saw a 60% year-over-year increase in ARR in Q3 of 2025, driven by higher adoption from telecom partners [8][12] - SECaaS accounted for approximately 28% of Allot's total revenues in Q3, with expectations to reach closer to 30% [9] - Allot's total revenues for 2025 are now projected to be between $100-$103 million, up from previous guidance, reflecting strong demand and user adoption [12] Group 3: Financial Performance and Valuation - CrowdStrike's expected earnings for fiscal 2026 are $3.72 per share, indicating a year-over-year decline of 5.4% [13] - In contrast, Allot's projected earnings for 2026 are 28 cents per share, reflecting a 24.3% increase year over year [15] - Over the past six months, Allot's shares have increased by 38%, while CrowdStrike's shares have decreased by 2% [17] - Allot trades at a forward sales multiple of 4.23X, significantly lower than CrowdStrike's 18.37X, indicating a more attractive valuation for investors [21]