Sourcefire, Inc. (FIRE), Fortinet Inc (FTNT): Prepare Your Portfolio Now For Cyber War

Fortinet Inc (NASDAQ:FTNT) has over 150,000 customers with revenues fairly evenly distributed around the world. Its patent portfolio is several times as large as Sourcefire, Inc. (NASDAQ:FIRE)’s. It’s market cap and top line are both about twice as large, too. However, bottom line results haven’t been particularly impressive. Like Sourcefire, Inc. (NASDAQ:FIRE), however, it looks to have years of growth ahead.

Neither of these companies are appropriate for conservative investors, although more aggressive investors with a long time horizon might want to step aboard these computer defenders.

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War is War

Another interesting option in the cyber war space is to buy into the military industrial complex. While the companies here have operations that span well beyond this one niche, they have been dealing with this issue for a long time. Moreover, the systems being protected are far more critical than an office network. When battlefield systems are at risk, there’s no room for mistakes.

The clear leader in supplying the armed forces is Lockheed Martin Corporation (NYSE:LMT). While its business is vast, it lays claim to being the number one provider of information technology services to the federal government for the last 18 years. And it has impressive credentials in the cyber war arena.

For example, the company is partnered with the Department of Defense Cyber Crime Center, providing “digital and multimedia forensics examination, analysis, research, development, test and evaluation, information technology and cyber analytical services.” Lockheed’s Palisade solution provides cyber security specifically to the energy industry. And its Wireless Cyber Security Center allows for the safe testing of “wireless communications systems in a classified environment.”

With a yield hovering around 5%, this industry giant is appropriate for income investors seeking exposure to the cyber war area. That said, the trend toward cutting defense spending could impact the company’s top line over the near term. Longer term, however, Lockheed will likely thrive.

A Changing Battlefield

One fact that every industry participant highlights is the changing face of the cyber threat. As one set of threats is stopped, new ones are created. Regardless of what form the next attack takes, however, the above companies will be there to fight it and profit from it. You can tag along for the ride.

The article Prepare Your Portfolio Now For Cyber War originally appeared on Fool.com is written by Reuben Gregg Brewer.

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