Which Is a Better Investment, Karooooo Ltd. or Varonis Systems, Inc. Stock?

By Rosalio Madrigal
August 01, 2026
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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 Karooooo Ltd. 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 Karooooo Ltd. compare based on key financial metrics to determine which better meets your investment needs.

About Varonis Systems, Inc. and Karooooo Ltd.

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.

Karooooo Ltd. provides software applications for fleet management, mobile asset tracking, workforce management, and video solutions in South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. It operates through Cartrack, Carzuka, and Karooooo Logistics segments. The company offers Cartrack, a mobility SaaS cloud that provides systems integration, fleet management and administration, field worker management, video-based safety, risk mitigation and compliance, delivery management, and reporting solutions; and Karooooo Logistics, a software application for management of last-mile delivery and general operational logistics. It also provides physical and e-commerce vehicle buying and selling marketplace. The company serves consumers and sole proprietors, small and medium-sized businesses, and large enterprises. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.

Latest Software and Varonis Systems, Inc., Karooooo Ltd. Stock News

As of July 31, 2026, Varonis Systems, Inc. had a $4.6 billion market capitalization, compared to the Software median of $977.4 million. Varonis Systems, Inc.’s stock is up 21.8% in 2026, down 12.7% in the previous five trading days and down 30.05% 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 July 31, 2026, Karooooo Ltd. had a $2.0 billion market cap, putting it in the 54th percentile of all stocks. Karooooo Ltd.’s stock is up 41.2% in 2026, up 1.4% in the previous five trading days and up 38.32% in the past year.

Currently, Karooooo Ltd.’s price-earnings ratio is 31.8. Karooooo Ltd.’s trailing 12-month revenue is $344.5 million with a 17.8% net profit margin. Year-over-year quarterly sales growth most recently was 80.8%. Analysts expect adjusted earnings to reach $2.385 per share for the current fiscal year. Karooooo Ltd. currently has a 2.3% dividend yield.

How We Compare Varonis Systems, Inc. and Karooooo Ltd. 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 Karooooo Ltd.’s stock grades to see how they measure up against one another.

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Varonis Systems, Inc. and Karooooo Ltd. Stock Value Grades

Company Ticker Value
Varonis Systems, Inc. VRNS F
Karooooo Ltd. KARO D

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.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Varonis Systems, Inc. has a Value Score of 10, which is Ultra Expensive. Karooooo Ltd. has a Value Score of 39, which is Expensive.

The Value Stock Winner: No Clear Winner

Neither Varonis Systems, Inc. or Karooooo Ltd. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Varonis Systems, Inc. or Karooooo Ltd. is the better investment when it comes to value.

Varonis Systems, Inc. and Karooooo Ltd. Growth Grades

Company Ticker Growth
Varonis Systems, Inc. VRNS A
Karooooo Ltd. KARO A

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Varonis Systems, Inc. has a Growth Score of 89, which is Very Strong. Karooooo Ltd. has a Growth Score of 89, which is Very Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Varonis Systems, Inc. and Karooooo Ltd. have a grade of A. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Varonis Systems, Inc. and Karooooo Ltd.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Varonis Systems, Inc. VRNS A
Karooooo Ltd. KARO C

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 94, which is Very Positive. Karooooo Ltd. has a Earnings Estimate Score of 52, which is Neutral.

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 Karooooo Ltd.. 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.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other Varonis Systems, Inc. and Karooooo Ltd. Grades

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

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Momentum grades help 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.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite 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 F-Score.

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 Karooooo Ltd. 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 Karooooo Ltd. Stock?

Overall, Varonis Systems, Inc. stock has a Value Score of 10, Growth Score of 89 and Estimate Revisions Score of 94.

Karooooo Ltd. stock has a Value Score of 39, Growth Score of 89 and Estimate Revisions Score of 52.

Comparing Varonis Systems, Inc. and Karooooo Ltd.’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.

Learn More About A+ Investor

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.



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