Reviewing Trimble Navigation (TRMB) and Varonis Systems (VRNS)

Trimble Navigation (NASDAQ: TRMB) and Varonis Systems (NASDAQ:VRNS) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Profitability

This table compares Trimble Navigation and Varonis Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trimble Navigation 7.25% 12.71% 7.92%
Varonis Systems -9.03% -20.94% -9.75%

Analyst Recommendations

This is a breakdown of current ratings for Trimble Navigation and Varonis Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trimble Navigation 0 4 5 0 2.56
Varonis Systems 0 2 8 0 2.80

Trimble Navigation currently has a consensus target price of $40.88, suggesting a potential upside of 0.60%. Varonis Systems has a consensus target price of $43.33, suggesting a potential downside of 3.27%. Given Trimble Navigation’s higher probable upside, equities research analysts clearly believe Trimble Navigation is more favorable than Varonis Systems.

Insider & Institutional Ownership

89.9% of Trimble Navigation shares are owned by institutional investors. Comparatively, 82.4% of Varonis Systems shares are owned by institutional investors. 1.4% of Trimble Navigation shares are owned by insiders. Comparatively, 19.5% of Varonis Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Trimble Navigation has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500. Comparatively, Varonis Systems has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Valuation and Earnings

This table compares Trimble Navigation and Varonis Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Trimble Navigation $2.45 billion 4.20 $429.60 million $0.69 58.88
Varonis Systems $185.90 million 6.63 -$13.29 million ($0.63) -71.11

Trimble Navigation has higher revenue and earnings than Varonis Systems. Varonis Systems is trading at a lower price-to-earnings ratio than Trimble Navigation, indicating that it is currently the more affordable of the two stocks.

Summary

Trimble Navigation beats Varonis Systems on 9 of the 13 factors compared between the two stocks.

Trimble Navigation Company Profile

Trimble Inc., formerly Trimble Navigation Limited, is engaged in providing technology solutions that enable professionals and field mobile workers to transform their work processes. The Company’s solutions are used across a range of industries, including agriculture, architecture, civil engineering, survey and land administration, construction, geospatial, government, natural resources, transportation and utilities. The Company’s business segments include Building and Infrastructure, Geospatial, Resource and utilities and Transportation. The Buildings and Infrastructure segment serves customers working in architecture, engineering, construction and operations and maintenance. The Geospatial segment primarily serves customers working in surveying, engineering, government and land management. The Resources and Utilities segment serves customers working in agriculture, forestry, and utilities. The Transportation segment serves customers working in transportation.

Varonis Systems Company Profile

Varonis Systems, Inc. provides a solutions that protect data from insider threats and cyberattacks. The Company’s products include DatAdvantage, DataPrivilege, Interface Data Unit Classification Framework, Data Transport Engine, DatAnywhere and DatAnswers. Its platform allows enterprises to analyze, secure, manage and migrate volumes of unstructured data. It specializes in file and e-mail systems that store valuable spreadsheets, word processing documents, presentations, audio and video files, e-mails and text. Its Metadata Framework is a technology platform that extracts metadata from an enterprise’s information technology (IT) infrastructure. Data often includes an enterprise’s financial information, intellectual property, and confidential employee, customer or patient records. IT and business personnel deploy its software for a range of use cases, including data security, governance and compliance, user behavior analytics, archiving, search, and file synchronization and sharing.

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