Sifting through countless of stocks in the Software industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Varonis Systems, Inc. or The Descartes Systems Group Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Varonis Systems, Inc. and The Descartes Systems Group Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Varonis Systems, Inc. and The Descartes Systems Group Inc.

Varonis Systems, Inc. provides software products and services that continuously discover and classify critical data, remediate exposures, and detect advanced threats with AI-powered technology in North America, Europe, APAC, and rest of worlds. The company offers Varonis Data Security Platform, a Software-as-a-Service solution which includes Data security posture management, Data access intelligence, Data discovery & classification, Discovery policy library, least privilege automation, Data activity monitoring, Data detection and response, and User & entity behavior analytics. It also provides Protection Packages, such as Microsoft 365, Windows & NAS, Hybrid, and Cloud Environments, as well as Database and Email Security Capabilities and On-Premises Subscription Products. It serves the financial services, public, healthcare, industrial, insurance, energy and utilities, technology, construction and engineering, education, and consumer and retail industries. Varonis Systems, Inc. was incorporated in 2004 and is headquartered in Miami, Florida.

The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company offers a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also provides its customers to use its modular and technology solutions to route, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company offers consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as retailers, manufacturers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. Further, the company develops Tai TMS, a transportation management software for freight brokers to manage quoting, booking, and shipment tracking. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.

Latest Software and Varonis Systems, Inc., The Descartes Systems Group Inc. Stock News

As of September 4, 2026, Varonis Systems, Inc. had a $5.3 billion market capitalization, compared to the Software median of $1.1 million. Varonis Systems, Inc.’s stock is up 40.5% in 2026, up 4.9% in the previous five trading days and down 17.3% in the past year.

Currently, Varonis Systems, Inc. does not have a price-earnings ratio. Varonis Systems, Inc.’s trailing 12-month revenue is $688.1 million with a -20.5% net profit margin. Year-over-year quarterly sales growth most recently was 18.3%. Analysts expect adjusted earnings to reach $0.151 per share for the current fiscal year. Varonis Systems, Inc. does not currently pay a dividend.

As of September 4, 2026, The Descartes Systems Group Inc. had a $6.8 billion market cap, putting it in the 72nd percentile of all stocks. The Descartes Systems Group Inc.’s stock is down 9.9% in 2026, down 3.5% in the previous five trading days and down 25.68% in the past year.

Currently, The Descartes Systems Group Inc.’s price-earnings ratio is 39.3. The Descartes Systems Group Inc.’s trailing 12-month revenue is $753.9 million with a 23.3% net profit margin. Year-over-year quarterly sales growth most recently was 14.8%. Analysts expect adjusted earnings to reach $2.891 per share for the current fiscal year. The Descartes Systems Group Inc. does not currently pay a dividend.

How We Compare Varonis Systems, Inc. and The Descartes Systems Group Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Varonis Systems, Inc. and The Descartes Systems Group Inc.’s stock grades to see how they measure up against one another.

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Varonis Systems, Inc. and The Descartes Systems Group Inc.’s Quality Grades

Company	Ticker	Quality
Varonis Systems, Inc.	VRNS	C
The Descartes Systems Group Inc.	DSGX	A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Varonis Systems, Inc. has a Quality Score of 59, which is Average. The Descartes Systems Group Inc. has a Quality Score of 96, which is Very Strong.

The Quality Grade Winner: The Descartes Systems Group Inc.

As you can clearly see from the Quality Grade breakdown above, The Descartes Systems Group Inc. has a better overall quality grade than Varonis Systems, Inc.. For investors who are looking for companies with higher quality than others in the same industry, The Descartes Systems Group Inc. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Varonis Systems, Inc. and The Descartes Systems Group Inc.’s Momentum Grades

Company	Ticker	Momentum
Varonis Systems, Inc.	VRNS	B
The Descartes Systems Group Inc.	DSGX	D

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Varonis Systems, Inc. has a Momentum Score of 70, which is Strong. The Descartes Systems Group Inc. has a Momentum Score of 25, which is Weak.

The Momentum Grade Winner: Varonis Systems, Inc.

As you can clearly see from the Momentum Grade breakdown above, Varonis Systems, Inc. is considered to have stronger momentum compared to The Descartes Systems Group Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Varonis Systems, Inc. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Varonis Systems, Inc. and The Descartes Systems Group Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Varonis Systems, Inc.	VRNS	B
The Descartes Systems Group Inc.	DSGX	D

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Varonis Systems, Inc. has a Earnings Estimate Score of 78, which is Positive. The Descartes Systems Group Inc. has a Earnings Estimate Score of 25, which is Negative.

The Earnings Estimate Revisions Grade Winner: Varonis Systems, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Varonis Systems, Inc. has a better Earnings Estimate Revisions Grade than The Descartes Systems Group Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Varonis Systems, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Varonis Systems, Inc. and The Descartes Systems Group Inc. Grades

In addition to Momentum, Quality and Estimate Revisions, A+ Investor also provides grades for Value and Growth.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Varonis Systems, Inc. and The Descartes Systems Group Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Varonis Systems, Inc. or The Descartes Systems Group Inc. Stock?

Overall, Varonis Systems, Inc. stock has a Momentum Score of 70, Estimate Revisions Score of 78 and Quality Score of 59.

The Descartes Systems Group Inc. stock has a Momentum Score of 25, Estimate Revisions Score of 25 and Quality Score of 96.

Comparing Varonis Systems, Inc. and The Descartes Systems Group Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.