With cyberthreats increasing, these pure play companies are vowing to protect users under different verticals of security.
With the cost of data breach continuing to grow, the demand for cybersecurity software has never been higher.
A new report from Kaspersky Lab revealed that the average cost of experiencing a data breach globally is on the rise with the breaches now amounting to US$1.23 million on average for enterprises. The number is 24 percent higher than the 2017 figure of $992,000. Similarly, for SMBs, the amount has climbed to $120,000 on average up 36 percent from $88,000 in 2017.
The company said that budgeting for IT security has become more of a priority as the cost of IT incidents continue rising. This is especially true for North American companies as it is up by nine percentage points to 28 percent of the total IT budget and for SMBs who are six percentage points at 25 percent.
On a global scale, enterprise companies are allocating up to $8.9 million on average or 26 percent of their IT budgets to cybersecurity.
“Cybersecurity has become not just a line item in IT bills, but a boardroom issue and a business priority for companies of all sizes, as evidenced by companies raising their IT security budgets,” said Maxim Frolov, vice president of global sales at Kaspersky Lab.
With cyberthreats becoming rampant across various devices including those owned by enterprises and SMBs, it’s inevitable that companies spend more on cybersecurity. As Kaspersky noted in its report, IT security is not just a line but a boardroom talk. For investors, now may be the time more than ever to jump into this space.
On that note, below is a list of pureplay cybersecurity companies trading across a range of stock exchanges listed in order of their market cap size. All numbers and figures are current as of market close on May 31, 2018.
1. Check Point Software (NASDAQ:CHKP)
Market cap: $15.48 billion; current share price: $97.36
The company offers numerous products to protect users on network, mobile, cloud and to also provide them with various security management services. The company has advanced threat prevention under network and endpoint protection along with a firewall and endpoint protection. It also offers SaaS security under cloud protection.
The company in April released its first quarter financial results where it reported 18 percent increase in the cash flow from operations on a year over year basis and a four per increase in total revenue.
2. Symantec (NASDAQ:SYMC)
Market cap: $12.98 billion; current share price: $20.78
One of the world’s leading cybersecurity companies with more than 50 million people relying on its products, the company offers integrated solutions to defend against sophisticated attacks across endpoints. Symantec provides solutions for various services including advanced threat protection, email security, cloud and network security services. Symantec also runs Norton, one of the popular antivirus software in the world.
The company in May announced that it is opening a new privacy and data protection lab in Germany to address growing concern over consumer data.
3. Zscaler Inc (NASDAQ:ZS)
Market cap: $3.08 billion; current share price: $26.26
The company enables the world’s leading organizations to securely transform their networks and applications for a mobile and cloud-first world. Zscaler’s services are cloud delivered and offer enhanced security to users in 185 countries. Its flagship services include Zscaler Internet Access and Zscaler Private Access that aims to create fast and secure connections between users and applications.
The company in April announced that it received FIPS 140-2 validation for encryption. FIPS 140-2 is the US government standard used to ensure that cryptographic modules meet the necessary security levels for confidentiality and integrity of sensitive but unclassified information.
4. ManTech International Corporation (NASDAQ:MANT)
Market cap: $2.13 billion; current share price: $53.91
ManTech provides mission-focused technology solutions and services for US defense, intelligence community and federal civilian agencies. The company’s products include AcqCenter and Sentris with their capabilities range from cyber defense to cyber offense.
Towards the end of May, the company announced that 18 financial institutions rehearsed their defenses against ransomware within ManTech’s advanced cyber range environment.
5. VASCO Data Security International (NASDAQ:VDSI)
Market cap: $872.75 million; current share price: $21.65
The company is a leader in business productivity solutions to the digital market. Its products are used by more than 10,000 customers in 100 countries with their clients being financial, enterprise, government agencies. It’s flagship product is the mobile security suite which offers protection from app shielding and behavioral biometrics authentication.
The company at the end of May renamed itself as OneSpan and launched new anti-fraud platform to reduce onboarding and transaction-related fraud for companies.
6. Cyren (NASDAQ:CYRN)
Market cap: $157.48 million; current share price: $2.95
The company claims to have more than 1.3 billion users around the world who rely on its cloud internet security solutions to protect them against cyber-attacks and data loss. Its flagship product is the web security which tends to protect anywhere and on any device through its cloud platform.
Cyren announced in May that it entered into strategic partnership with Meta Networks to deliver next generation security. Meta NaaS, a cloud native product from Meta Networks integrates with Cyren DNS security and Cyren Web Security to protect users when they access the internet.
7. Supercom Ltd (NASDAQ:SPCB)
Market cap: $45.20 million; current share price: $1.501
Supercom Ltd is company that is a global provider of traditional and digital identity solutions and provides advanced safety and identification products and solutions to government as well as private and public organizations.
Towards the end of May, the company announced that was awarded national electronic monitoring project in Scandinavia.
8. Applied DNA Sciences Inc (NASDAQ:APDN)
Market cap: $44.87 million; current share price: $1.49
Applied DNA is a provider of molecular technologies that enable supply chain security, anti-counterfeiting and anti-theft technology. The flagship solutions include SigNature DNA, BackTrac and DNAnet along with SigNature and fibertyping.
The company signed a multi-year license agreement with WestPoint Home in May to provide its platform services for their hospitality bedding and textile goods.
9. VirtualArmour International (CSE:VAI)
Market cap: $15.08 million; current share price: $0.27
VirtualArmour International is a global cybersecurity and managed services provider that delivers customized solutions to help businesses build, monitor, maintain and secure their networks.
The company announced its Q1 results towards the end of May where it reported a record revenue of $3.3 million which they claim to have driven by growth in the number of customers served as well as the size of orders from new and existing customers.
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Data for this article was pulled using FinViz’s stock screener. These stocks were classified under security software and services.
Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: VirtualArmour International is a client of the Investing News Network. This article is not paid for content.