Review of Varonis (NASDAQ:VRNS) and MicroStrategy (NASDAQ:MSTR) systems

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Varonis Systems (NASDAQ:VRNSGet a rating) and MicroStrategy (NASDAQ: MSTRGet a rating) are both mid-size IT and technology companies, but what’s the best move? We’ll compare the two companies based on their risk strength, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares the net margins, return on equity, and return on assets of Varonis Systems and MicroStrategy.

Net margins Return on equity return on assets
Varonis Systems -31.58% -19.97% -10.71%
MicroStrategy -109.68% -30.40% -5.65%

Valuation and benefits

This table compares revenue, earnings per share (EPS), and valuation of Varonis Systems and MicroStrategy.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Varonis Systems $390.13 million 9.69 -$116.86 million ($1.21) -28.51
MicroStrategy $510.76 million 6.50 -$535.48 million ($54.33) -5.42

Varonis Systems has higher revenue, but lower revenue than MicroStrategy. Varonis Systems trades at a lower price-to-earnings ratio than MicroStrategy, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

93.2% of Varonis Systems shares are held by institutional investors. By comparison, 52.9% of MicroStrategy’s shares are held by institutional investors. 1.9% of Varonis Systems stock is held by insiders of the company. By comparison, 22.6% of MicroStrategy’s stock is held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.

Volatility and risk

Varonis Systems has a beta of 1.28, suggesting its stock price is 28% more volatile than the S&P 500. In comparison, MicroStrategy has a beta of 1.72, suggesting its stock price is 72% more volatile. volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommendations for Varonis Systems and MicroStrategy, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Varonis Systems 0 1 12 0 2.92
MicroStrategy 1 1 1 0 2.00

Varonis Systems currently has a consensus target price of $61.08, indicating a potential upside of 77.05%. MicroStrategy has a consensus target price of $585.75, indicating 99.07% upside potential. Given MicroStrategy’s likely higher upside, analysts clearly think MicroStrategy is more favorable than Varonis Systems.

Summary

Varonis Systems beats MicroStrategy on 8 out of 13 factors compared between the two stocks.

Varonis Systems Company Profile (Get a rating)

Varonis Systems, Inc. provides software products and services that enable enterprises to manage, analyze, alert and secure enterprise data in North America, Europe, the Middle East, Africa and internationally. Its software enables businesses to protect data stored on-premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patient and employee data; financial records; strategic plans and products; and other intellectual properties. The company offers DatAdvantage which captures, aggregates, normalizes and analyzes every data access event for users on Windows and UNIX/Linux servers, storage devices, messaging systems, Intranet servers, cloud applications and data stores; and DatAlert which profiles users, devices and their behaviors related to systems and data, detects and alerts on deviations that indicate compromise, and provides a web-based dashboard and investigation interface. It also provides a data classification engine that identifies and tags data based on defined criteria in various metadata dimensions, as well as provides business and IT personnel with actionable insights into the data; and DataPrivilege, which offers a self-service web portal that allows users to request access to data needed for their business functions, and owners to grant access without IT intervention. Additionally, the company provides Data Transport Engine, which provides an execution engine that unifies data and metadata manipulation, translating business decisions and instructions into technical commands, such as data migration or archiving; and DatAnswers which offers search functionality for enterprise data. Varonis Systems, Inc. sells products and services through a network of distributors and resellers. The company serves IT, security and business personnel. Varonis Systems, Inc. was incorporated in 2004 and is headquartered in New York, New York.

MicroStrategy Company Profile (Get a rating)

MicroStrategy LogoMicroStrategy Incorporated provides business analytics software and services worldwide. It offers MicroStrategy, an enterprise platform, which provides a modern analytics experience by providing users with insights across multiple devices through hyperintelligence products, visualization and reporting capabilities, mobility features and custom applications developed on the platform; data analysts and scientists with seamless access to trusted, governed data right in their tools; and APIs and gateways, multiple deployment options, enterprise semantic graph, scalability and security. The company also provides MicroStrategy support that helps customers meet their system uptime and availability goals, and improve the overall experience through highly responsive troubleshooting and proactive technical support. Additionally, it offers MicroStrategy Consulting which provides clients with architectural and implementation services to help them achieve results quickly and help achieve ROI derived from understanding data; and MicroStrategy Education which offers free and paid learning options. The Company provides its services through a corporate sales force and channel partners. It serves businesses in a variety of industries, including retail, consulting, technology, manufacturing, finance, banking, insurance, healthcare, education, and telecommunications, as well as the public sector. The company was incorporated in 1989 and is based in Tysons Corner, Virginia.



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