Varonis Systems (VRNS) & Its Peers Critical Review

Varonis Systems (NASDAQ:VRNS) is one of 954 publicly-traded companies in the “Software” industry, but how does it weigh in compared to its rivals? We will compare Varonis Systems to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Valuation and Earnings

This table compares Varonis Systems and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Varonis Systems	$623.53 million	-$129.32 million	-36.92
Varonis Systems Competitors	$1.80 billion	$385.28 million	109.00

Varonis Systems’ rivals have higher revenue and earnings than Varonis Systems. Varonis Systems is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Varonis Systems has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Varonis Systems’ rivals have a beta of 1.34, meaning that their average share price is 34% more volatile than the S&P 500.

Institutional & Insider Ownership

95.7% of Varonis Systems shares are held by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are held by institutional investors. 3.0% of Varonis Systems shares are held by insiders. Comparatively, 19.9% of shares of all “Software” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Varonis Systems and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Varonis Systems	-21.38%	-22.20%	-6.35%
Varonis Systems Competitors	-607.19%	26.73%	-8.88%

Analyst Recommendations

This is a summary of current ratings and target prices for Varonis Systems and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varonis Systems	1	21	4	0	2.12
Varonis Systems Competitors	5780	21576	44960	1498	2.57

Varonis Systems presently has a consensus price target of $50.39, suggesting a potential upside of 2.63%. As a group, “Software” companies have a potential upside of 29.58%. Given Varonis Systems’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Varonis Systems has less favorable growth aspects than its rivals.

Summary

Varonis Systems rivals beat Varonis Systems on 10 of the 13 factors compared.

About Varonis Systems

Varonis Systems, Inc. develops cybersecurity software focused on protecting organizations’ data. Its platform helps businesses discover and classify sensitive information, manage access, identify potential threats, and remediate security risks across cloud and on-premises environments. The company’s offerings include data security, identity security, and threat-detection capabilities. They are designed to help organizations protect information in systems such as Microsoft 365, cloud infrastructure, and other business applications.