BB vs. CRWD: Which Cybersecurity Stock Is the Smarter Buy Now?

BlackBerry Limited BB and CrowdStrike Holdings, Inc. CRWD offer cybersecurity solutions, including endpoint protection and enterprise security solutions, making them contenders in a high-growth industry driven by increasing digital threats.

Amid rapid cloud deployment and digital transformation, as well as the proliferation of smart and IoT devices, cyberattacks have become highly sophisticated. This creates a more complex attack surface, necessitating advanced cybersecurity solutions for endpoints, networks and cloud environments. High-profile data breaches have heightened awareness and urgency across industries, leading to heavy investment in cyber defense.

Per a Grand View Research report, the cybersecurity market is projected to witness a CAGR of 12.9% from 2025 to 2030. This creates strong tailwinds for companies like CrowdStrike, BlackBerry and others operating in this fast-evolving industry.

So, now the question arises: Which stock makes for a better investment pick at present? Let’s dive into the pros and cons of each company.

The Case for BB

Once a smartphone giant, BlackBerry has now pivoted its focus on cybersecurity and Internet of Things (IoT) solutions. BlackBerry’s Secure Communications division now consists of BlackBerry Unified endpoint management (“UEM”), BlackBerry SecuSUITE and BlackBerry AtHoc solutions. BB recently offloaded its underperforming Cylance business to Arctic Wolf and reviewed the cost structure of the Secure Communications division to better focus on a more targeted customer base and improve overall cost efficiency.

Secure Communications’ fiscal fourth-quarter revenues of $67.3 million beat the high limit of the company’s forecast ($62-$66 million), driven by strong AtHoc revenues and renewals in the core German market. Healthy momentum in UEM stemmed from rising deal wins from government agencies, top banks and law firms. The rising demand for UEM solutions is being driven by the snowballing complexity of managing a growing number of endpoints while maintaining data security and regulatory compliance. BlackBerry highlights that the major trends fueling this growth include the integration of AI and machine learning to improve device management and the transition to cloud-based UEM platforms for enhanced scalability and flexibility.

BlackBerry has developed strong ties with U.S. and international government agencies. The company’s solutions power more than 255 million vehicles and secure 17 of the G20 governments. This provides a relatively stable revenue stream and brand credibility in high-trust environments, such as defense, critical infrastructure and public safety.

Expansion of the deal with the Malaysian government bolsters both the contract length and the number of licenses. The Malaysian government has successfully used its full Secure Communications portfolio and is working to replicate this model in other regions. Management highlighted that this division is a key contributor to BlackBerry’s overall EBITDA and cash flow.

It has successfully achieved its initial target of cutting back roughly $150 million from its run rate. BlackBerry's total adjusted EBITDA for fiscal 2025 was $39.3 million, including Cylance. This marks a $54 million improvement from last year after adjusting for the patent sale in early fiscal 2024. Cash and investments grew $144 million, mainly due to a strong boost in operating cash flow, which reached $42 million, along with the receipt of the first $80 million payment from the Cylance deal. Management expects an additional $75 million of cash to be added in fiscal 2026, including the second Cylance payment of $40 million, positioning the company to reinvest or return capital opportunistically.

The Case for CRWD

Sunnyvale, CA-based CrowdStrike is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services.  CrowdStrike’s strong product innovation pipeline continues to enhance its market position. In the fourth quarter of fiscal 2025, the company introduced Falcon Data Protection, a new solution aimed at preventing data loss and ensuring compliance, which addresses rising concerns around data security. This product expansion strengthens the platform’s value proposition and opens new revenue streams.

CrowdStrike’s Falcon platform is gaining popularity as an “AI-native SOC,” with strong adoption in Charlotte AI Agentic Detection Triage, Workflows and Response. CrowdStrike is partnering with other AI companies to expand its capabilities. In the last reported quarter, Subscription revenues of $1.01 billion rose 27% from the year-ago quarter's level.  This was partly due to the Falcon Flex Subscription Model, which allows customers to commit upfront and later choose modules, eliminating procurement friction.

However, CrowdStrike is facing several challenges related to customers’ negative sentiments since the global IT outage incident on July 19, 2024. The company has been implementing the Customer Commitment Package (to retain its customers), which includes product additions and discounts, hence compressing its revenue recognition and profitability. The cybersecurity landscape is intensely competitive, with major players like Palo Alto Networks, SentinelOne and Cisco expanding aggressively.

Over the past few years, CrowdStrike has invested heavily to enhance its sales and marketing capabilities, particularly by increasing the sales force. As a result, its sales and marketing expenses flared up nearly ninefold to $1.52 billion in fiscal 2025 from $173 million in fiscal 2019. Additionally, investment in R&D is a top priority for CrowdStrike.

The company has increased its R&D expenses to improve the design, architecture, operation and quality of its cloud platform. Higher sales and marketing, and R&D expenses might weigh on the company’s bottom-line results. In the last reported quarter, CrowdStrike’s non-GAAP R&D expenses climbed 31.6% year over year to $199.7 million.

Price Performance and Valuation for BB & CRWD

Over the past month, BB and CRWD have registered gains of 10.5% and 7.6%, respectively.

In terms of the forward 12-month Price/sales ratio, BB is trading at 4.21X, lower than CRWD's 22.17X.

How Do Zacks Estimates Compare for BB & CRWD?

Analysts have significantly raised BB’s earnings estimates for the current fiscal year in the past 60 days. 

Meanwhile, for CRWD, there is a marginal upward estimate revision.

BB or CRWD: Which is a Better Pick?

Both BB and CRWD are well-positioned to gain from the rapidly growing cybersecurity market. BB, at present, flaunts a Zacks Rank #1 (Strong Buy) while CrowdStrike carries a Zacks Rank #4 (Sell). Hence, in terms of Zacks Rank, BB seems to be a better pick at the moment.

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

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

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