Varonis Systems (NASDAQ: VRNS) is one of 97 public companies in the “Enterprise Software” industry, but how does it weigh in compared to its peers? We will compare Varonis Systems to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Varonis Systems and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Varonis Systems 0 2 8 0 2.80
Varonis Systems Competitors 343 2040 3878 107 2.59

Varonis Systems presently has a consensus target price of $43.33, suggesting a potential downside of 1.29%. As a group, “Enterprise Software” companies have a potential upside of 4.35%. Given Varonis Systems’ peers higher possible upside, analysts plainly believe Varonis Systems has less favorable growth aspects than its peers.

Insider & Institutional Ownership

82.4% of Varonis Systems shares are held by institutional investors. Comparatively, 59.2% of shares of all “Enterprise Software” companies are held by institutional investors. 19.5% of Varonis Systems shares are held by company insiders. Comparatively, 23.4% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Varonis Systems has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Varonis Systems’ peers have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.

Earnings & Valuation

This table compares Varonis Systems and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Varonis Systems $185.90 million -$13.29 million -69.68
Varonis Systems Competitors $1.27 billion $348.15 million 37.72

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

Profitability

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

Net Margins Return on Equity Return on Assets
Varonis Systems -9.03% -20.94% -9.75%
Varonis Systems Competitors -25.29% -211.37% -8.18%

Summary

Varonis Systems peers beat Varonis Systems on 7 of the 12 factors compared.

About Varonis Systems

Varonis Systems, Inc. provides a solutions that protect data from insider threats and cyberattacks. The Company’s products include DatAdvantage, DataPrivilege, Interface Data Unit Classification Framework, Data Transport Engine, DatAnywhere and DatAnswers. Its platform allows enterprises to analyze, secure, manage and migrate volumes of unstructured data. It specializes in file and e-mail systems that store valuable spreadsheets, word processing documents, presentations, audio and video files, e-mails and text. Its Metadata Framework is a technology platform that extracts metadata from an enterprise’s information technology (IT) infrastructure. Data often includes an enterprise’s financial information, intellectual property, and confidential employee, customer or patient records. IT and business personnel deploy its software for a range of use cases, including data security, governance and compliance, user behavior analytics, archiving, search, and file synchronization and sharing.

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