Varonis Systems (NASDAQ:VRNS – Get Free Report) and Alarum Technologies (NASDAQ:ALAR – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.
Profitability
This table compares Varonis Systems and Alarum Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Varonis Systems | -20.55% | -19.18% | -5.97% |
| Alarum Technologies | 2.53% | 17.11% | 12.65% |
Insider & Institutional Ownership
95.7% of Varonis Systems shares are owned by institutional investors. Comparatively, 3.2% of Alarum Technologies shares are owned by institutional investors. 3.0% of Varonis Systems shares are owned by insiders. Comparatively, 2.7% of Alarum Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Varonis Systems | $623.53 million | 8.61 | -$129.32 million | ($1.23) | -38.02 |
| Alarum Technologies | $40.76 million | 0.39 | $960,000.00 | $0.16 | 13.38 |
Alarum Technologies has lower revenue, but higher earnings than Varonis Systems. Varonis Systems is trading at a lower price-to-earnings ratio than Alarum Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings for Varonis Systems and Alarum Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Varonis Systems | 1 | 7 | 16 | 0 | 2.62 |
| Alarum Technologies | 1 | 1 | 1 | 0 | 2.00 |
Varonis Systems presently has a consensus price target of $49.79, suggesting a potential upside of 6.48%. Alarum Technologies has a consensus price target of $14.00, suggesting a potential upside of 554.21%. Given Alarum Technologies’ higher possible upside, analysts plainly believe Alarum Technologies is more favorable than Varonis Systems.
Volatility & Risk
Varonis Systems has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Alarum Technologies has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.
Summary
Alarum Technologies beats Varonis Systems on 8 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 Alarum Technologies
Alarum Technologies Ltd. provides internet access and web data collection solutions in North, South, and Central America, Europe, Southeast Asia, the Middle East, and Africa. The company operates through two segments, Enterprise Internet Access Solutions and Consumer Internet Access Solutions. The company offers security blanket against ransomware, viruses, phishing, and other online threats, as well as secured and encrypted connection, masking the customers online activity and keeping them safe from hackers. It also provides privacy solutions and services, a software solution that uses an encryption protocol which is defined upon the process being used to generate a secured encrypted path and keep the users' data private and safe; and web data collection solution allows organizations to collect vast amounts of web and internet data by simultaneously connecting to the Internet from different IP addresses. In addition, the company offers static residential proxy network, rotating residential proxy network, data center proxy network, premium dedicated static residential proxies, mobile proxies, SERP data collection service, and social data collection service, as well as advertising services to enterprise customers. The company offers its products through resellers and internet service providers. It serves advertising and media companies, financial organizations, cyber security companies, industrial and commercial companies, online companies, education institutions, and AI recruitment market and other sectors. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv, Israel.
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