Axon Enterprise vs. CrowdStrike: Which Security Stock Is a Better Buy?
2026-10-26 12:55
•Sarah Sidlow •The Motley Fool
••••• •••• Axe Cap view
Axon vs CrowdStrike: A Clearer Bet in Security Stocks
Axon's mix of profitability and growth at a reasonable price stands out against CrowdStrike's expensive, loss-making cloud security play.
South African investors looking to gain exposure to cybersecurity and physical security should lean towards Axon Enterprise. The company posts strong revenue growth (33.5%) and actual profits, not losses, which is rare in this sector. Axon's valuation, while not cheap, is far more reasonable than CrowdStrike’s astronomical P/E over 7,000. The economic moat in public safety hardware and software integration is solid and underappreciated after a 45% dip in the share price. CrowdStrike’s cloud model is exciting but priced for perfection and recent operational setbacks, including a costly outage and ties to Amazon’s infrastructure, raise red flags. For JSE investors, the USD/ZAR rate will be a key factor: a weaker rand could boost the USD-cost of holdings but also increase local opportunity costs. That said, if cloud cybersecurity suddenly turns wildly profitable and CrowdStrike’s issues resolve faster than expected, their premium could be justified. Until then, Axon's combination of growth, profit, and valuation keeps it the safer bet. this is just our opinion and not financial advice
Buy Axon shares on weakness, given its strong fundamentals and better risk profile. Watch CrowdStrike from the sidelines and only consider it if valuation compresses substantially or profitability improves visibly.
- AXON
- CRWD
- USD/ZAR
- CrowdStrike turns profitable faster than expected
- Rand weakness inflates USD exposure costs
7/10
The article compares Axon Enterprise and CrowdStrike as security investment options. Axon dominates physical security for law enforcement with hardware and software, posting 33.5% revenue growth and profitability. CrowdStrike leads cloud cybersecurity with its Falcon platform but reported a net loss despite 21.7% revenue growth. The author recommends Axon as the better buy due to its lower valuation (P/E 174 vs 7215), profitable operations, and strong economic moat, despite its recent 45% stock decline.
Our take is based on reporting first published by The Motley Fool.