Veeva Systems (NYSE:VEEV) and Varonis Systems (NASDAQ:VRNS) Financial Survey

Veeva Systems (NYSE:VEEV) and Varonis Systems (NASDAQ:VRNS) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$2.36 billion	14.91	$525.71 million	$3.39	64.29
Varonis Systems	$499.16 million	12.08	-$100.92 million	($0.94)	-57.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	23.91%	13.30%	10.74%
Varonis Systems	-16.97%	-18.31%	-7.91%

Institutional & Insider Ownership

88.2% of Veeva Systems shares are held by institutional investors. Comparatively, 95.7% of Varonis Systems shares are held by institutional investors. 10.5% of Veeva Systems shares are held by insiders. Comparatively, 2.6% of Varonis Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Veeva Systems has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Varonis Systems has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Veeva Systems and Varonis Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	1	7	15	0	2.61
Varonis Systems	0	5	12	1	2.78

Veeva Systems presently has a consensus target price of $229.96, suggesting a potential upside of 5.51%. Varonis Systems has a consensus target price of $56.33, suggesting a potential upside of 4.81%. Given Veeva Systems’ higher probable upside, analysts clearly believe Veeva Systems is more favorable than Varonis Systems.

Summary

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

About Veeva Systems

Veeva Systems Inc. provides cloud-based software for the life sciences industry. It offers Veeva Commercial Cloud, a suite of software and analytics solutions, such as Veeva customer relationship management (CRM) that enable customer-facing employees at pharmaceutical and biotechnology companies; Veeva Vault PromoMats, an end-to-end content and digital asset management solution; Veeva Vault Medical that provides source of medical content across multiple channels and geographies; Veeva Crossix, an analytics platform for pharmaceutical brands; Veeva OpenData, a customer reference data solution; Veeva Link, a data application that allows link to generate real-time intelligence; and Veeva Compass includes de-identified and longitudinal patient data for the United States. The company also provides Veeva Development Cloud, a suite of applications for the clinical, regulatory, quality, and safety functions, including Veeva Vault Clinical, Veeva Vault RIM, Veeva Vault Safety, and Veeva Vault Quality; Veeva QualityOne, a quality and document management, and training solution; Veeva RegulatoryOne, a solution that helps companies to manage regulatory submission content; and Veeva Claims addresses the end-to-end product and marketing claims management process. In addition, it offers professional and support services, including implementation and deployment planning and project management; requirements analysis, solution design, and configuration; systems environment management and deployment services; services focused on advancing or transforming business and operating processes related to Veeva solutions; data migration and systems integrations technical consulting services; training on its solutions; and ongoing managed services, such as outsourced systems administration. The company was formerly known as Verticals onDemand, Inc. and changed its name to Veeva Systems Inc. in April 2009. Veeva Systems Inc. was incorporated in 2007 and is headquartered in Pleasanton, California.

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.