SharpSpring (NASDAQ:SHSP) & Varonis Systems (NASDAQ:VRNS) Head to Head Survey

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Varonis Systems and SharpSpring, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Varonis Systems 0 2 17 0 2.89
SharpSpring 0 2 3 0 2.60

Varonis Systems presently has a consensus target price of $63.11, indicating a potential upside of 22.74%. SharpSpring has a consensus target price of $19.50, indicating a potential upside of 42.34%. Given SharpSpring’s higher probable upside, analysts plainly believe SharpSpring is more favorable than Varonis Systems.

Valuation and Earnings

This table compares Varonis Systems and SharpSpring’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Varonis Systems $292.69 million 18.65 -$94.01 million ($0.85) -60.49
SharpSpring $29.29 million 6.01 -$5.83 million N/A N/A

SharpSpring has lower revenue, but higher earnings than Varonis Systems.

Institutional and Insider Ownership

94.2% of Varonis Systems shares are held by institutional investors. Comparatively, 56.2% of SharpSpring shares are held by institutional investors. 1.8% of Varonis Systems shares are held by company insiders. Comparatively, 21.2% of SharpSpring shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Varonis Systems has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, SharpSpring has a beta of 1.79, meaning that its stock price is 79% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Varonis Systems -31.35% -38.26% -12.30%
SharpSpring -24.56% -22.55% -14.77%

Summary

SharpSpring beats Varonis Systems on 7 of the 13 factors compared between the two stocks.

Varonis Systems Company Profile

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, 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; strategic and product plans; and other intellectual property. The company offers DatAdvantage that captures, aggregates, normalizes, and analyzes every data access event for users on Windows and UNIX/Linux servers, storage devices, email systems, and Intranet servers; and DatAlert that profiles users 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, and provides business and information technology (IT) personnel with actionable intelligence about data; and DataPrivilege, which provides a self-service Web portal that allows users to request access to data necessary for their business functions, and owners to grant access without IT intervention. In addition, the company offers Data Transport Engine, which provides 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 offers search functionality for enterprise data. It sells its 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.

SharpSpring Company Profile

SharpSpring, Inc. operates as a cloud-based marketing technology company worldwide. The company offers SharpSpring, a marketing automation Software as a Service platform that uses features, such as web tracking, lead scoring, and automated workflow, as well as enables a business to store, manage, and optimize customer and prospect data in a cloud-based environment; and SharpSpring Mail+ product, a subset of the full suite solution, which focuses on traditional email marketing. It also provides Perfect Audience, a cloud-based platform that offers display retargeting software products and services. The company serves various organizations, including marketing agencies and small and medium size businesses, associations, and non-profits. It markets and sells its products and services through internal sales teams and third-party resellers. The company was formerly known as SMTP, Inc. and changed its name to SharpSpring, Inc. in December 2015. SharpSpring, Inc. was founded in 1998 and is headquartered in Gainesville, Florida.

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