Bazaarvoice (NASDAQ: BV) and Varonis Systems (NASDAQ:VRNS) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitabiliy.

Earnings and Valuation

This table compares Bazaarvoice and Varonis Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bazaarvoice $201.24 million 1.78 -$4.90 million ($0.19) -24.21
Varonis Systems $174.37 million 5.90 -$13.63 million ($0.63) -60.00

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

Volatility and Risk

Bazaarvoice has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Varonis Systems has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Bazaarvoice and Varonis Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bazaarvoice 0 0 4 0 3.00
Varonis Systems 0 2 8 0 2.80

Bazaarvoice presently has a consensus target price of $6.44, suggesting a potential upside of 39.95%. Varonis Systems has a consensus target price of $41.50, suggesting a potential upside of 9.79%. Given Bazaarvoice’s stronger consensus rating and higher possible upside, research analysts plainly believe Bazaarvoice is more favorable than Varonis Systems.

Institutional & Insider Ownership

80.6% of Bazaarvoice shares are owned by institutional investors. Comparatively, 63.9% of Varonis Systems shares are owned by institutional investors. 3.4% of Bazaarvoice shares are owned by insiders. Comparatively, 19.5% of Varonis Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Bazaarvoice -7.92% -8.34% -4.79%
Varonis Systems -9.03% -21.12% -9.95%

Summary

Bazaarvoice beats Varonis Systems on 9 of the 13 factors compared between the two stocks.

About Bazaarvoice

Bazaarvoice, Inc. offers solutions and services that allow its retailer and brand clients to understand that consumer voice and the role it plays in influencing purchasing decisions, both online and offline. The Company’s solutions collect, curate and display consumer-generated content, including ratings and reviews, questions and answers, customer stories, and social posts, photos and videos. This content is syndicated and distributed across its clients’ marketing channels. Its solutions, which the Company provides primarily through a software-as-a-service (SaaS) platform, enable the clients to capture and display consumer-generated content; syndicate that consumer-generated content into its network of brand and retail clients; understand consumer behavior, and monetize the value of that content through targeted advertising based on online and offline shopping behavior. The Company’s geographical segments include Americas, EMEA and Other.

About Varonis Systems

Varonis Systems, Inc. provides a solutions that protect data from insider threats and cyberattacks. The Company’s products include DatAdvantage, DataPrivilege, Interface Data Unit Classification Framework, Data Transport Engine, DatAnywhere and DatAnswers. Its platform allows enterprises to analyze, secure, manage and migrate volumes of unstructured data. It specializes in file and e-mail systems that store valuable spreadsheets, word processing documents, presentations, audio and video files, e-mails and text. Its Metadata Framework is a technology platform that extracts metadata from an enterprise’s information technology (IT) infrastructure. Data often includes an enterprise’s financial information, intellectual property, and confidential employee, customer or patient records. IT and business personnel deploy its software for a range of use cases, including data security, governance and compliance, user behavior analytics, archiving, search, and file synchronization and sharing.

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