Critical Comparison: Varonis Systems (NASDAQ:VRNS) and Rubrik (NYSE:RBRK)

Varonis Systems (NASDAQ:VRNS) and Rubrik (NYSE:RBRK) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Earnings and Valuation

This table compares Varonis Systems and Rubrik”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Varonis Systems	$499.16 million	10.82	-$100.92 million	($0.75)	-64.01
Rubrik	$627.89 million	20.15	-$354.16 million	N/A	N/A

Varonis Systems has higher earnings, but lower revenue than Rubrik.

Institutional & Insider Ownership

95.7% of Varonis Systems shares are owned by institutional investors. Comparatively, 49.5% of Rubrik shares are owned by institutional investors. 2.6% of Varonis Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varonis Systems	0	5	11	1	2.76
Rubrik	0	1	16	2	3.05

Varonis Systems currently has a consensus price target of $59.67, indicating a potential upside of 24.28%. Rubrik has a consensus price target of $61.88, indicating a potential downside of 11.94%. Given Varonis Systems’ higher probable upside, equities analysts clearly believe Varonis Systems is more favorable than Rubrik.

Profitability

This table compares Varonis Systems and Rubrik’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Varonis Systems	-15.31%	-17.58%	-6.74%
Rubrik	N/A	N/A	N/A

Summary

Rubrik beats Varonis Systems on 8 of the 12 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 Rubrik

Rubrik, Inc. provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves financial, retail, trade, transportation, energy, industrial, healthcare and life science, education, technology, media, communications, and public sectors. Rubrik, Inc. was formerly known as Scaledata, Inc. and changed its name to Rubrik, Inc. in October 2014. The company was incorporated in 2013 and is based in Palo Alto, California.