Financial Review: Check Point Software Technologies (NASDAQ:CHKP) and Varonis Systems (NASDAQ:VRNS)

Varonis Systems (NASDAQ:VRNS) and Check Point Software Technologies (NASDAQ:CHKP) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Earnings & Valuation

This table compares Varonis Systems and Check Point Software Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Varonis Systems	$550.95 million	10.19	-$95.76 million	($0.81)	-61.91
Check Point Software Technologies	$2.57 billion	9.39	$845.70 million	$7.58	28.88

Check Point Software Technologies has higher revenue and earnings than Varonis Systems. Varonis Systems is trading at a lower price-to-earnings ratio than Check Point Software Technologies, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

95.7% of Varonis Systems shares are owned by institutional investors. Comparatively, 98.5% of Check Point Software Technologies shares are owned by institutional investors. 2.3% of Varonis Systems shares are owned by company insiders. Comparatively, 29.0% of Check Point Software Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Varonis Systems has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500. Comparatively, Check Point Software Technologies has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Varonis Systems and Check Point Software Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varonis Systems	0	5	13	1	2.79
Check Point Software Technologies	0	16	11	1	2.46

Varonis Systems presently has a consensus target price of $55.06, suggesting a potential upside of 9.78%. Check Point Software Technologies has a consensus target price of $232.44, suggesting a potential upside of 6.17%. Given Varonis Systems’ stronger consensus rating and higher probable upside, equities analysts plainly believe Varonis Systems is more favorable than Check Point Software Technologies.

Profitability

This table compares Varonis Systems and Check Point Software Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Varonis Systems	-15.88%	-20.01%	-5.84%
Check Point Software Technologies	32.75%	32.88%	16.43%

Summary

Check Point Software Technologies beats Varonis Systems on 9 of the 14 factors compared between the two stocks.

About Varonis Systems

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; source code, strategic and product plans; and other intellectual property. It offers DatAdvantage that captures, aggregates, normalizes, and analyzes every data access event for users on Windows and UNIX/Linux servers, storage devices, email systems, intranet servers, cloud applications, and data stores; and DatAlert that profiles users, devices, and their behaviors related to systems and data, detects and alerts on deviations that indicate compromise, and provides a web-based dashboard and investigative interface. It also provides data Classification engine that identifies and tags data based on criteria set in various metadata dimensions, as well as provides business and information technology (IT) personnel with actionable intelligence about data; and DataPrivilege. In addition, the company offers Data Transport Engine, an execution engine that unifies the manipulation of data and metadata, translating business decisions, and instructions into technical commands, such as data migration or archiving; and DatAnswers that provides search functionality for enterprise data. It serves its products to financial services, public, healthcare, industrial, technology, insurance, energy and utilities, consumer and retail, education and construction, and engineering sectors. The company sells its products through a network of distributors and resellers. Varonis Systems, Inc. was incorporated in 2004 and is headquartered in New York, New York.

About Check Point Software Technologies

Check Point Software Technologies Ltd. develops, markets, and supports a range of products and services for IT security worldwide. The company offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions. It provides Check Point Infinity Architecture, a cyber security architecture that protects against fifth generation cyber-attacks across various networks, endpoint, cloud, workloads, Internet of Things, and mobile. In addition, the company offers security gateways and software platforms that support small and medium sized business. Further, it provides cloud network security, cloud native application protection, security and posture management, cloud identity and entitlement, cloud workload protection, cloud detection and response, and cloud web application protection for web applications and APIs; and Check Point Harmony that delivers endpoint and secure connectivity for remote user access. Additionally, the company offers technical customer support programs and plans; professional services in implementing, upgrading, and optimizing Check Point products comprising design planning and security implementation; and certification and educational training services on Check Point products. It sells its products through distributors, resellers, system integrators, original equipment manufacturers, and managed security service providers. Check Point Software Technologies Ltd. was incorporated in 1993 and is headquartered in Tel Aviv, Israel.