Bridgeline Digital (NASDAQ: BLIN) and Varonis Systems (NASDAQ:VRNS) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Valuation & Earnings

This table compares Bridgeline Digital and Varonis Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bridgeline Digital $15.78 million 0.76 -$832,000.00 ($1.35) -2.13
Varonis Systems $185.90 million 6.64 -$13.29 million ($0.63) -71.19

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

Profitability

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

Net Margins Return on Equity Return on Assets
Bridgeline Digital -29.84% -9.85% -6.42%
Varonis Systems -9.03% -20.94% -9.75%

Insider and Institutional Ownership

34.0% of Bridgeline Digital shares are held by institutional investors. Comparatively, 82.4% of Varonis Systems shares are held by institutional investors. 33.8% of Bridgeline Digital shares are held by company insiders. Comparatively, 19.5% of Varonis Systems shares are held by company 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.

Risk & Volatility

Bridgeline Digital has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500. Comparatively, Varonis Systems has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bridgeline Digital and Varonis Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridgeline Digital 0 0 0 0 N/A
Varonis Systems 0 2 8 0 2.80

Varonis Systems has a consensus target price of $43.33, suggesting a potential downside of 3.38%. Given Varonis Systems’ higher probable upside, analysts plainly believe Varonis Systems is more favorable than Bridgeline Digital.

Summary

Varonis Systems beats Bridgeline Digital on 8 of the 12 factors compared between the two stocks.

Bridgeline Digital Company Profile

Bridgeline Digital, Inc. is a digital engagement company. The Company’s iAPPS platform is a Web Engagement Management (WEM) platform that integrates Web Content Management, e-commerce, e-marketing, Social Media management and Web Analytics to help marketers deliver digital experiences that engage and convert their customers across all channels. The iAPPS platform is delivered through a cloud-based Software as a Service (SaaS) multi-tenant business model, which provides customers with deployment providing maintenance, daily technical operation and support, or through a perpetual licensing business model. The iAPPS suite of products includes iAPPS Experience Manager, iAPPS Content Manager, iAPPS Commerce, iAPPS Marketier, iAPPS Analyzer, iAPPSds and iAPPS Social. It offers various services, such as digital engagement services, digital strategy services, usability design and information architecture. It provides shared hosting, dedicated hosting and SaaS hosting for its customers.

Varonis Systems Company Profile

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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