Reviewing Varonis Systems (NASDAQ:VRNS) & CrowdStrike (NASDAQ:CRWD)

CrowdStrike (NASDAQ:CRWD) 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, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CrowdStrike	-4.17%	0.43%	0.17%
Varonis Systems	-17.30%	-23.06%	-5.76%

Earnings and Valuation

This table compares CrowdStrike and Varonis Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CrowdStrike	$3.95 billion	26.98	-$19.27 million	($0.69)	-620.14
Varonis Systems	$550.95 million	11.88	-$95.76 million	($0.92)	-63.49

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

Institutional & Insider Ownership

71.2% of CrowdStrike shares are held by institutional investors. Comparatively, 95.7% of Varonis Systems shares are held by institutional investors. 3.3% of CrowdStrike shares are held by insiders. Comparatively, 2.3% of Varonis Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

CrowdStrike has a beta of 1.13, meaning that its stock price is 13% 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.

Analyst Recommendations

This is a summary of recent ratings for CrowdStrike and Varonis Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CrowdStrike	1	19	26	0	2.54
Varonis Systems	0	3	13	0	2.81

CrowdStrike presently has a consensus price target of $461.1667, indicating a potential upside of 7.77%. Varonis Systems has a consensus price target of $58.50, indicating a potential upside of 0.15%. Given CrowdStrike’s higher possible upside, research analysts plainly believe CrowdStrike is more favorable than Varonis Systems.

Summary

CrowdStrike beats Varonis Systems on 11 of the 14 factors compared between the two stocks.

About CrowdStrike

CrowdStrike Holdings, Inc. provides cybersecurity solutions in the United States and internationally. Its unified platform offers cloud-delivered protection of endpoints, cloud workloads, identity, and data. The company offers corporate endpoint and cloud workload security, managed security, security and vulnerability management, IT operations management, identity protection, SIEM and log management, threat intelligence, data protection, security orchestration, automation and response and AI powered workflow automation, and securing generative AI workload services. It primarily sells subscriptions to its Falcon platform and cloud modules. The company was incorporated in 2011 and is headquartered in Austin, Texas.

About Varonis Systems

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; source code, strategic and product plans; and other intellectual property. It offers DatAdvantage that captures, aggregates, normalizes, and analyzes every data access event for users on Windows and UNIX/Linux servers, storage devices, email systems, intranet servers, cloud applications, and data stores; and DatAlert that 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 investigative interface. It also provides data Classification engine that identifies and tags data based on criteria set in various metadata dimensions, as well as provides business and information technology (IT) personnel with actionable intelligence about data; and DataPrivilege. In addition, the company offers Data Transport Engine, an execution engine that unifies the manipulation of data and metadata, translating business decisions, and instructions into technical commands, such as data migration or archiving; and DatAnswers that provides search functionality for enterprise data. It serves its products to financial services, public, healthcare, industrial, technology, insurance, energy and utilities, consumer and retail, education and construction, and engineering sectors. The company sells its products through a network of distributors and resellers. Varonis Systems, Inc. was incorporated in 2004 and is headquartered in New York, New York.