BlackBerry Limited (BB) vs Varonis Systems, Inc. (VRNS)

BlackBerry Limited and Varonis Systems, Inc. are both Software Infrastructure companies. BlackBerry Limited and Varonis Systems, Inc. are of similar size ($5.4B and $5.1B). Varonis Systems, Inc. has negative trailing earnings, so its P/E is not meaningful; BlackBerry Limited trades at 59.9×. Varonis Systems, Inc. grew revenue faster over the last twelve months: 15.6% against 14.4%. BlackBerry Limited has the higher net margin (13.1% vs −20.6%) and the higher return on invested capital (8.56% vs −47.4%). Across the 19 metrics below, BlackBerry Limited leads on 14 and Varonis Systems, Inc. on 5.

Valuation

Metric BB VRNS Software Infrastructure median
P/E 59.93 n/m 28.38
P/S 7.70 8.13 2.98
P/B 5.97 12.59 2.93
Price to free cash flow 54.98 47.28 16.28
EV/EBITDA 47.37 n/m 13.92
EV/Sales 7.67 7.77 2.90
Earnings yield 1.67% (2.52%) 0.14%
Free cash flow yield 1.82% 2.11% 1.24%

Profitability

Metric BB VRNS Software Infrastructure median
Gross margin 77.87% 77.07% 61.00%
Operating margin 13.63% (21.99%) 0.00%
Net margin 13.09% (20.55%) 0.00%
Free cash flow margin 14.01% 17.19% 1.67%
Return on equity 10.60% (35.97%) 0.60%
Return on assets 6.57% (8.65%) 0.00%
Return on invested capital 8.56% (47.40%) 0.00%

Growth

Metric BB VRNS Software Infrastructure median
Revenue growth (TTM) 14.42% 15.61% 13.41%
EPS growth (last fiscal year) 169.23% (31.40%) 27.10%
Revenue growth, 5-year CAGR (9.27%) 16.33% 15.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BB VRNS Software Infrastructure median
Debt to equity 0.25 1.02 0.05
Current ratio 2.38 1.65 1.55
Net debt to EBITDA (2.47) 6.77 0.08

Dividend

Metric BB VRNS Software Infrastructure median
Dividend yield — — 1.20%
Payout ratio — — 0.29

Size

Metric BB VRNS Software Infrastructure median
Market cap 5.11b 5.44b 752.37m

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