The Canadian cybersecurity sector is an attractive growth market, and the biggest players by market cap may be a place for interested investors to begin.
It's no secret how important cybersecurity is for preventing serious cyber attacks capable of compromising sensitive information belonging to companies and individuals.
Between 2021 and 2028, the global cybersecurity market is projected to grow at a compound annual growth rate of 12 percent to reach a value of US$366.1 billion, according to Fortune Business Insights. The research firm attributes this expected growth to “the surging number of e-commerce platforms and the growing integration of machine learning, internet-of-things, and cloud (technologies).”
Because of this outlook, the Canadian government is increasing its investment in cybersecurity. For example, it has launched the Cyber Security Innovation Network program, which includes C$80 million in investment over four years. “A strong cybersecurity sector will cement Canadians' trust in the digital economy,” a press release states.
This supportive environment makes Canadian cybersecurity stocks potentially attractive for investors. Here the Investing News Network takes a look at five of the biggest cybersecurity companies trading on the TSX and TSXV. The Canadian cybersecurity stocks below are listed in order of market cap from largest to smallest, and all figures were current as of market close on February 28, 2022.
1. BlackBerry (TSX:BB)
Market cap: C$4.95 billion
Formerly a mobile device behemoth, BlackBerry has in recent years shifted its focus to providing cybersecurity software and services to businesses and governments worldwide. The company is harnessing the power of artificial intelligence (AI) and machine learning to deliver cybersecurity and data privacy solutions. These solutions include endpoint management, endpoint security, encryption and embedded systems. BlackBerry says it secures more than 500 million endpoints, including over 195 million vehicles.
BlackBerry recently published an annual report on cyber threats, highlighting the security issues facing small businesses and public cloud platforms.
2. Magnet Forensics (TSX:MAGT)
Market cap: C$1.1 billion
Next on this list of Canadian cybersecurity stocks is Ontario-based Magnet Forensics, which develops data analytics software for digital forensic professionals in the public sector and private enterprises in Canada and internationally. The software aids forensic investigators in the acquisition, analysis and sharing of digital evidence.
In early January, the company released its Magnet Automate Enterprise tool, which focuses on “automating the basic and repetitive tasks performed by a manual user to keep investigations running 24/7/365 without human intervention.” By automating basic and repetitive manual tasks, Magnet Automate Enterprise allows for quick and effective investigations and responses to cybersecurity incidents.
3. Absolute Software (TSX:ABST)
Market cap: C$580.83 million
Absolute Software provides visibility and near real-time remediation of security breaches right at the source. Its security solutions are provided to commercial and healthcare industries, plus education and the government.
These security solutions are diverse, and include: data breach prevention, data visibility and protection, self-healing endpoint security, general data protection regulation, governance and compliance, insider threat prevention, IT asset management and shadow IT.
4. VIQ Solutions (TSX:VQS)
Market cap: C$68.72 million
VIQ Solutions provides AI-driven, cybersecurity-protected technology and service platforms for digital voice and video capture technology and transcription services. The company’s technology includes encryption at rest, digital hashes and two-way public key infrastructures.
VIQ Solutions’ technology services platform is used by sectors that require secure environments, including criminal justice, legal, insurance, government, corporate finance and media. The company’s suite of solutions for onsite and remote workforces has received the FBI-approved Criminal Justice Information System ACE Readiness Seal.
5. Destiny Media Technologies (TSXV:DSY)
Market cap: C$20.3 million
Last on this Canadian cybersecurity stocks list is Destiny Media Technologies. Based on its name alone, it isn’t immediately obvious the company has interests in cybersecurity. That said, it develops and markets software-as-a-solution elements that solve distribution and promotion problems specific to the music industry.
The company owns and operates two businesses: Play MPE and Clipstream. The former provides ways to securely distribute pre-release music to radio stations and other music industry insiders for promotional purposes.
In short, while not a direct cybersecurity company, Destiny Media Technologies is in the business of ensuring music isn’t leaked and is kept secure until released to the public.
This is an updated version of an article first published by the Investing News Network in 2018.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
- Ways to Invest in Security Tools | INN ›
- 9 Pure Play Cybersecurity Stocks | INN ›
- Ways to Invest in Mobile Security | INN ›
- Top NASDAQ Security Stocks | INN ›
- Why is Cybersecurity Important? ›