Amdocs Limited (DOX) vs Varonis Systems, Inc. (VRNS)

Amdocs Limited and Varonis Systems, Inc. are both Software Infrastructure companies. Amdocs Limited is the larger, with a market value of $6.2B against $5.5B — 1.1× the size. Varonis Systems, Inc. has negative trailing earnings, so its P/E is not meaningful; Amdocs Limited trades at 13.7×. Varonis Systems, Inc. grew revenue faster over the last twelve months: 15.6% against 0.14%. Amdocs Limited has the higher net margin (9.56% vs −20.6%) and the higher return on invested capital (9.39% vs −47.4%). Across the 20 metrics below, Amdocs Limited leads on 15 and Varonis Systems, Inc. on 5.

Valuation

Metric DOX VRNS Software Infrastructure median
P/E 13.67 n/m 28.02
P/S 1.28 7.72 3.07
P/B 1.79 11.95 3.36
Price to free cash flow 9.34 44.89 17.12
EV/EBITDA 8.17 n/m 14.91
EV/Sales 1.46 7.36 3.03
Earnings yield 7.32% (2.66%) 0.13%
Free cash flow yield 10.71% 2.23% 1.15%

Profitability

Metric DOX VRNS Software Infrastructure median
Gross margin 38.28% 77.07% 61.23%
Operating margin 13.47% (21.99%) 0.00%
Net margin 9.56% (20.55%) 0.00%
Free cash flow margin 13.73% 17.19% 1.67%
Return on equity 12.95% (35.97%) 0.59%
Return on assets 6.98% (8.65%) 0.00%
Return on invested capital 9.39% (47.40%) 0.00%

Growth

Metric DOX VRNS Software Infrastructure median
Revenue growth (TTM) 0.14% 15.61% 13.41%
EPS growth (last fiscal year) 18.82% (31.40%) —
Revenue growth, 5-year CAGR 1.69% 16.33% 15.81%
Net income growth, 5-year CAGR 2.32% 0.00% 0.00%

Health

Metric DOX VRNS Software Infrastructure median
Debt to equity 0.32 1.02 0.06
Current ratio 0.94 1.65 1.55
Net debt to EBITDA 0.50 6.77 0.08

Dividend

Metric DOX VRNS Software Infrastructure median
Dividend yield 1.98% — 1.53%
Payout ratio 0.36 0.00 0.00

Size

Metric DOX VRNS Software Infrastructure median
Market cap 6.22b 5.51b 835.96m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack