<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>CrowdStrike’s cloud-native approach is locking in lots of customers.</li><li>Palo Alto’s platformization strategy will widen its moat.</li><li>10 stocks we like better than Palo Alto Networks ›</li></ul>CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW) are two of the world's largest cybersecurity companies. Both stocks have generated massive multibagger gains since their public debuts as the cybersecurity market expanded.But over the past 12 months, CrowdStrike's stock has risen 33%, while Palo Alto's stock has declined 4%. Let's see why the former outperformed the latter, and if it will remain the better cybersecurity stock to buy for the rest of 2026.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDM1MS9hLWRpZ2l0YWwtcGFkbG9jay1jeWJlcnNlY3VyaXR5LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="415" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MDM1MS9hLWRpZ2l0YWwtcGFkbG9jay1jeWJlcnNlY3VyaXR5LmpwZyZ3PTcwMA"/>Image source: Getty Images. <h2>The differences between CrowdStrike and Palo Alto Networks</h2>Palo Alto Networks splits its ecosystem into three main platforms: Strata, for its older on-site networking services; Prisma, for its cloud-based services; and Cortex, for its AI-powered threat detection services. Most of its recent growth has been driven by Prisma and Cortex, which it collectively refers to as its &#34;next-gen security&#34; services. It also recently acquired CyberArk, a leader in privileged access management (PAM) services, for $25 billion.Palo Alto's older services still need to be deployed on-site via expensive, maintenance-intensive appliances that are difficult to scale as a company grows. CrowdStrike addresses those issues with Falcon, its cloud-native endpoint security platform that doesn't require on-site appliances and locks customers in with sticky recurring subscriptions. Its customers start with a handful of trial cloud modules and add more to access additional security features.<h2>Which company is growing faster?</h2>From fiscal 2020 to fiscal 2025 (which ended last July), Palo Alto's revenue grew at a 22% CAGR. It also became profitable under generally accepted accounting principles (GAAP) in fiscal 2023 and grew its net income at a 61% CAGR over the following two years.From fiscal 2025 to fiscal 2028, analysts expect Palo Alto's revenue and EPS to grow at CAGRs of 19% and 22%, respectively. That growth should be driven by its NGS services, its recent acquisition of CyberArk, and its &#34;platformization&#34; strategy of bundling more niche services into its core platforms to pull companies away from smaller cybersecurity companies.From fiscal 2021 to fiscal 2026 (which ended this January), CrowdStrike's revenue grew at a 41% CAGR. However, it isn't profitable by GAAP measures yet. It grew rapidly as its cloud-native services pulled more companies away from legacy cybersecurity providers, and it increased revenue per customer by selling more modules.From fiscal 2026 to fiscal 2029, analysts expect CrowdStrike's revenue to grow at a 22% CAGR. They also expect it to turn profitable in fiscal 2027, and to grow its net income at a 100% CAGR over the following two years. Its top-line growth should be driven by the expansion of its consumption-based &#34;Falcon Flex&#34; plans (which don't require rigid subscriptions or module purchases) and the use of generative AI tools to simplify its threat detection services. Its profitability should also improve as it reduces its stock-based compensation expenses.Both companies are well positioned to profit from the secular expansion of the cybersecurity market, which is generally insulated from macro headwinds because companies won't shut off their digital defenses just to save a few dollars. According to Fortune Business Insights, the global cybersecurity market could still expand at a 13.8% CAGR from 2026 to 2034.However, both companies could eventually face tougher competition from diversified tech giants like Microsoft (NASDAQ: MSFT), which are bundling more endpoint security services into their software, and AI-native cybersecurity companies like SentinelOne (NYSE: S).<h2>Which stock is the better value?</h2>Palo Alto trades at 45 times its forward-adjusted (non-GAAP) earnings, while CrowdStrike has a much higher forward-adjusted price-to-earnings ratio of 91. CrowdStrike is growing only slightly faster than Palo Alto, but its cloud-native approach is attracting more growth-oriented investors.Both of these stocks are still reliable cybersecurity plays. But if I had to pick one over the other, I'd buy Palo Alto because it's trading at a more reasonable valuation in this volatile market.<h2>Should you buy stock in Palo Alto Networks right now?</h2> Before you buy stock in Palo Alto Networks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palo Alto Networks wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $508,607!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!* Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 188% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 13, 2026. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, Microsoft, and SentinelOne. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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CrowdStrike and Palo Alto Networks are leading cybersecurity firms with contrasting growth trajectories. CrowdStrike's stock rose 33% over the past year, while Palo Alto's fell 4%. CrowdStrike's cloud-native Falcon platform is gaining traction, while Palo Alto's growth is driven by its platformization strategy and recent CyberArk acquisition. Analysts predict CrowdStrike will achieve profitability by fiscal 2027, with a 22% revenue growth rate, while Palo Alto is expected to grow at 19%. Despite CrowdStrike's higher valuation, Palo Alto is seen as a better investment due to its reasonable pricing in a volatile market.

CrowdStrike vs. Palo Alto Networks: Which Cybersecurity Stock Will Win 2026?