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

CrowdStrike CRWD and Allot Inc. ALLT are both at the forefront of the cybersecurity space, playing key roles in guarding organizations from extensive cyberattacks. While CrowdStrike specializes in endpoint protection and extended detection and response, offering AI-native cloud security through its Falcon platform, Allot provides cybersecurity and network intelligence solutions for Service Providers and Enterprises.

CrowdStrike and Allot are capitalizing on the rapid improvement of the cybersecurity space, fueled by the rise of complex attacks, including credential theft and abuse, remote desktop protocol attacks and social engineering-based initial access. Per a Mordor Intelligence report, the cybersecurity market is projected to witness a CAGR of 12.28% from 2026 to 2031.

With this strong industry growth forecast, 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 Stock

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

CrowdStrike’s cloud-based Falcon platform currently provides 29 cloud modules via a software-as-a-service subscription model that is categorized 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.

In the third quarter of fiscal 2026, annual recurring revenues (ARR) from Falcon Flex customers reached $1.35 billion, growing more than 200% year over year. Over 200 customers expanded their Flex contracts in the third quarter, and some more than doubled their original spending. This shows that customers see value quickly and are willing to increase their usage once they start with Flex.

CrowdStrike’s recent quarterly reports have shown a deceleration in its growth rate. The company's revenue growth, while still robust, is not as explosive as in previous years. CrowdStrike had enjoyed more than 35% year-over-year top-line growth till fiscal 2024. The growth rate decelerated in fiscal 2025 to 29%. This trend is expected to continue in fiscal 2026. For fiscal 2026, CrowdStrike expects total revenues to be in the range of $4.797 billion to $4.807 billion, which indicates that the top-line growth is expected to decelerate to around 21-22%.

The Case for Allot Stock

Allot provides network-based cybersecurity and network intelligence solutions, mainly for telecom operators and service providers. The company is witnessing strong growth in its Cybersecurity-as-a-Service (SECaaS) business. In the third quarter of 2025, SECaaS’ ARR increased about 60% year over year. Growth was primarily driven by higher adoption from telecom partners and more end users signing up for Allot's security services.

SECaaS made up around 28% of Allot’s total revenues in the third quarter, and looking ahead, management expects this share to move closer to 30%. This is crucial because SECaaS is a subscription-based offering, which offers more predictable revenues. Recurring revenues accounted for 63% of total revenues in the third quarter compared with 58% a year ago, showing a gradual improvement in revenue quality.

During the third quarter earnings call, management outlined a few clear drivers behind SECaaS growth. Large Tier-1 telecom customers that launched services in recent quarters are continuing to add new subscribers, which is driving demand for Allot’s solutions. Existing customers are also buying additional services over time, which supports upselling. Newer offerings, such as OffNetSecure, allow the company to offer protection even when users are off the operator’s network.

In the third quarter of 2025, its sales and non-GAAP EPS grew 14% and 233.3%, respectively, year over year. Considering a strong demand for its solutions and a better-than-expected third-quarter performance, Allot raised its guidance for 2025. The company now expects 2025 revenues to be in the range of $100-$103 million, up from its previous guidance of $98-$102 million. SECaaS ARR growth is now expected to exceed 60% on a year-over-year basis, up from its prior guidance of 55-60%. The above-mentioned factors demonstrate that steady user adoption and strong SECaaS momentum should continue to support Allot’s overall growth in the coming quarters.

How Do Earnings Estimates Compare for CRWD & ALLT?

Allot has a steady earnings growth outlook compared with CrowdStrike.

The Zacks Consensus Estimate for CrowdStrike’s fiscal 2026 earnings is pegged at $3.72 per share, revised upward by a penny over the past seven days. This indicates a year-over-year decline of 5.4%.

The Zacks Consensus Estimate for Allot’s projected 2026 earnings is pegged at 28 cents per share, revised upward by 3 cents over the past 60 days. This indicates a 24.3% increase year over year.

CRWD vs. ALLT: Price Performance and Valuation

In the past six months, Allot shares have surged 38%, while shares of CrowdStrike have lost 2%.

CRWD vs. ALLT: 6-Month Price Return Performance

Currently, Allot is trading at a forward sales multiple of 4.23X, lower than CrowdStrike’s forward sales multiple of 18.37X. Allot’s reasonable valuation makes it more attractive for investors looking for value and stability.

CRWD vs. ALLT: Forward 12-Month P/S Ratio

Conclusion: Hold ALLT Stock, Sell CRWD Right Now

Both Allot and CrowdStrike are key players in the Cybersecurity space, but CrowdStrike is witnessing a slowdown in its sales growth. In contrast, Allot is seeing strong growth in its SECaaS business, which is driving higher revenues, rising recurring income, and better earnings visibility.

Allot’s reasonable valuation offers downside protection as well, making it a better choice for investors looking for stability and steady upside.

Currently, Allot carries a Zacks Rank #3 (Hold), giving the stock a clear edge over CrowdStrike, which carries 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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