CGNT vs VRNS

For growth investors, Varonis Systems, Inc.

(VRNS) is the stronger pick with 13. 2% revenue growth year-over-year, versus 11. 9% for Cognyte Software Ltd. (CGNT). Analysts rate Varonis Systems, Inc. (VRNS) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, Varonis Systems, Inc.

(VRNS) delivered a total return of -41. 4%, compared to -56. 4% for Cognyte Software Ltd. (CGNT). Over 10 years, the gap is even starker: VRNS returned +317. 5% versus CGNT's -60. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Varonis Systems, Inc.

(VRNS) is the lower-risk stock at 0. 95β versus Cognyte Software Ltd. 's 1. 27β — meaning CGNT is approximately 34% more volatile than VRNS relative to the S&P 500. On balance sheet safety, Cognyte Software Ltd. (CGNT) carries a lower debt/equity ratio of 16% versus 96% for Varonis Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Varonis Systems, Inc.

(VRNS) is pulling ahead at 13. 2% versus 11. 9% for Cognyte Software Ltd. (CGNT). On earnings-per-share growth, the picture is similar: Cognyte Software Ltd. grew EPS 22. 7% year-over-year, compared to -31. 4% for Varonis Systems, Inc.. Over a 3-year CAGR, VRNS leads at 9. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cognyte Software Ltd.

(CGNT) is the more profitable company, earning -3. 4% net margin versus -20. 7% for Varonis Systems, Inc. — meaning it keeps -3. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CGNT leads at -1. 5% versus -23. 5% for VRNS. At the gross margin level — before operating expenses — VRNS leads at 79. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Cognyte Software Ltd.

(CGNT) trades at 46. 9x forward P/E versus 242. 2x for Varonis Systems, Inc. — 195. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for VRNS: 30. 4% to $36. 00.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Varonis Systems, Inc.

(VRNS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 95), +317. 5% 10Y return). Both have compounded well over 10 years (VRNS: +317. 5%, CGNT: -60. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.