Varonis Systems (NASDAQ:VRNS – Get Free Report) and CrowdStrike (NASDAQ:CRWD – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Risk and Volatility
Varonis Systems has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, CrowdStrike has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Earnings & Valuation
This table compares Varonis Systems and CrowdStrike”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Varonis Systems | $550.95 million | 12.03 | -$95.76 million | ($0.92) | -64.30 |
| CrowdStrike | $4.14 billion | 26.64 | -$19.27 million | ($1.19) | -371.43 |
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
95.7% of Varonis Systems shares are owned by institutional investors. Comparatively, 71.2% of CrowdStrike shares are owned by institutional investors. 2.3% of Varonis Systems shares are owned by insiders. Comparatively, 3.3% of CrowdStrike shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Varonis Systems and CrowdStrike’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Varonis Systems | -17.30% | -23.06% | -5.76% |
| CrowdStrike | -6.84% | -1.58% | -0.62% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Varonis Systems and CrowdStrike, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Varonis Systems | 0 | 3 | 14 | 0 | 2.82 |
| CrowdStrike | 1 | 18 | 25 | 0 | 2.55 |
Varonis Systems presently has a consensus target price of $60.47, suggesting a potential upside of 2.22%. CrowdStrike has a consensus target price of $456.98, suggesting a potential upside of 3.39%. Given CrowdStrike’s higher possible upside, analysts clearly believe CrowdStrike is more favorable than Varonis Systems.
Summary
CrowdStrike beats Varonis Systems on 10 of the 14 factors compared between the two stocks.
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.
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.
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