By It’s no secret how important cybersecurity is for preventing serious cyber attacks capable of compromising sensitive information belonging to companies and individuals.
Between 2023 and 2030, the global cybersecurity market is projected to grow at a compound annual growth rate of 13.8 percent to reach a value of US$424.97 billion, according to Fortune Business Insights. The research firm attributes this expected growth to “the increasing adoption of enterprise security solutions’ in key industries including manufacturing, banking, financial services, insurance and healthcare.
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.
1. OpenText (TSX:OTEX)
Market cap: C$15.21 billion
First on this Canadian cybersecurity stocks list is one of Canada’s largest software companies. OpenText develops and sells enterprise information management software, and its products help companies with the secure capture, governance and exchange of information.
In May, OpenText was recognized as a leader in application security testing in the 2023 Gartner Magic Quadrant review for the 10th consecutive year. ‘With the rapid change in how organizations develop and deploy applications, application security has evolved into a critical part of the development process,’ said OpenText Vice President and Chief Product Officer Muhi Majzoub. ‘We believe continued recognition as a Gartner Magic Quadrant Leader is a testament to the strength of our product and ability to anticipate and innovate to meet evolving market needs.’
2. BlackBerry (TSX:BB,NYSE:BB)
Market cap: C$4.23 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 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 a report on cyber threats, highlighting the security issues facing small businesses and public cloud platforms.
3. Softchoice (TSX:SFTC,OTC Pink:SFTCF)
Market cap: C$1 billion
Next on this list of Canadian cybersecurity stocks is Softchoice, another leading North American software-focused IT solutions and managed services provider. The company is partnered with technology giants such as Microsoft (NASDAQ:MSFT), Amazon’s (NASDAQ:AMZN) AWS and Alphabet’s (NASDAQ:GOOGL) Google Cloud in the deployment of cloud services for secure workplaces.
During its 2022 fiscal year, Softchoice saw its gross profit increase by 8.8 percent over the previous year to reach US$312.3 million. The boost was helped by 12.2 percent growth in the company’s software and cloud solutions division, which was driven by strong growth in its public cloud and security software solutions.
4. Absolute Software (TSX:ABST,NASDAQ:ABST)
Market cap: C$817.55 million
Absolute Software provides visibility and near real-time remediation of security breaches right at the source. Its security solutions are provided to the commercial and healthcare industries, plus the education sector 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.
5. Cybeats Technologies (CSE:CYBT,OTCQB:CYBCF)
Market cap: C$132.21 million
Last on this Canadian cybersecurity stocks list is Cybeats Technologies. This cybersecurity company provides software bill of materials management and software supply chain intelligence technology to organizations that require risk management, compliance and security services across the software supply chain. Cybeats’ clients come from a wide range of market verticals, and include companies focused on industrial control systems, medical device manufacturing, data management and the automotive industry.
Cybeats’ recent commercial successes include securing a licensing agreement with Schneider Electric (EPA:SU), a global specialist in energy management and automation in more than 100 countries. The company also has a licensing agreement with Integral Ad Science (NASDAQ:AIS), and with a top three global medical device manufacturer and three of the “big seven” industrial controls and building automation companies on the Fortune 500.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.