Box, Inc. (BOX) vs Varonis Systems, Inc. (VRNS)

Box, Inc. and Varonis Systems, Inc. are both Software Infrastructure companies. Box, Inc. and Varonis Systems, Inc. are of similar size ($5.4B and $5.4B). Varonis Systems, Inc. has negative trailing earnings, so its P/E is not meaningful; Box, Inc. trades at 54.9×. Varonis Systems, Inc. grew revenue faster over the last twelve months: 15.6% against 9.63%. Box, Inc. has the higher net margin (8.14% vs −20.6%) and the higher return on invested capital (0.00% vs −47.4%). Across the 18 metrics below, Box, Inc. leads on 14 and Varonis Systems, Inc. on 4.

Valuation

Metric BOX VRNS Software Infrastructure median
P/E 54.94 n/m 28.38
P/S 4.40 8.13 2.98
P/B n/m 12.59 2.93
Price to free cash flow 15.54 47.28 16.28
EV/EBITDA 27.21 n/m 13.92
EV/Sales 4.58 7.77 2.90
Earnings yield 1.82% (2.52%) 0.14%
Free cash flow yield 6.43% 2.11% 1.24%

Profitability

Metric BOX VRNS Software Infrastructure median
Gross margin 79.55% 77.07% 61.00%
Operating margin 9.43% (21.99%) 0.00%
Net margin 8.14% (20.55%) 0.00%
Free cash flow margin 28.36% 17.19% 1.67%
Return on equity (32.39%) (35.97%) 0.60%
Return on assets 6.64% (8.65%) 0.00%
Return on invested capital 0.00% (47.40%) 0.00%

Growth

Metric BOX VRNS Software Infrastructure median
Revenue growth (TTM) 9.63% 15.61% 13.41%
EPS growth (last fiscal year) (57.35%) (31.40%) 27.10%
Revenue growth, 5-year CAGR 8.84% 16.33% 15.57%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BOX VRNS Software Infrastructure median
Debt to equity (1.29) 1.02 0.05
Current ratio 1.06 1.65 1.55
Net debt to EBITDA (0.16) 6.77 0.08

Dividend

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

Size

Metric BOX VRNS Software Infrastructure median
Market cap 5.42b 5.44b 752.37m

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