Tenable Holdings, Inc. (TENB) vs Varonis Systems, Inc. (VRNS)

Tenable Holdings, Inc. and Varonis Systems, Inc. are both Software Infrastructure companies. Tenable Holdings, Inc. and Varonis Systems, Inc. are of similar size ($5.7B and $5.2B). Varonis Systems, Inc. has negative trailing earnings, so its P/E is not meaningful; Tenable Holdings, Inc. trades at 345×. Varonis Systems, Inc. grew revenue faster over the last twelve months: 15.6% against 9.53%. Tenable Holdings, Inc. has the higher net margin (1.48% vs −20.6%) and the higher return on invested capital (0.00% vs −47.4%). Across the 18 metrics below, Tenable Holdings, Inc. leads on 16 and Varonis Systems, Inc. on 2.

Valuation

Metric TENB VRNS Software Infrastructure median
P/E 344.59 n/m 26.15
P/S 4.81 8.16 2.87
P/B n/m 12.63 2.94
Price to free cash flow 19.25 47.44 17.26
EV/EBITDA 63.65 n/m 15.00
EV/Sales 4.68 7.80 2.95
Earnings yield 0.29% (2.52%) 0.00%
Free cash flow yield 5.20% 2.11% 0.39%

Profitability

Metric TENB VRNS Software Infrastructure median
Gross margin 78.11% 77.07% 59.21%
Operating margin 4.37% (21.99%) 0.00%
Net margin 1.48% (20.55%) 0.00%
Free cash flow margin 25.01% 17.19% 0.00%
Return on equity 9.93% (35.97%) 0.00%
Return on assets 0.92% (8.65%) 0.00%
Return on invested capital 0.00% (47.40%) 0.00%

Growth

Metric TENB VRNS Software Infrastructure median
Revenue growth (TTM) 9.53% 15.61% 13.57%
EPS growth (last fiscal year) 3.23% (31.40%) 20.22%
Revenue growth, 5-year CAGR 17.82% 16.33% 16.02%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric TENB VRNS Software Infrastructure median
Debt to equity 0.00 1.02 0.02
Current ratio 1.04 1.65 1.54
Net debt to EBITDA (1.54) 6.77 0.05

Dividend

Metric TENB VRNS Software Infrastructure median
Dividend yield — — 1.09%
Payout ratio — — 0.30

Size

Metric TENB VRNS Software Infrastructure median
Market cap 5.18b 5.65b 655.75m

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