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

Insider & Institutional Ownership

11.6% of Appian shares are held by institutional investors. Comparatively, 84.5% of Varonis Systems shares are held by institutional investors. 19.5% of Varonis Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Appian and Varonis Systems’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Appian N/A N/A N/A N/A N/A
Varonis Systems $164.46 million 8.44 -$17.71 million ($0.58) -85.95

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

Profitability

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

Net Margins Return on Equity Return on Assets
Appian -14.07% -48.57% -17.09%
Varonis Systems -7.91% -18.97% -8.68%

Analyst Recommendations

This is a summary of recent ratings and price targets for Appian and Varonis Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Appian 0 6 2 0 2.25
Varonis Systems 0 2 7 0 2.78

Appian presently has a consensus price target of $21.50, indicating a potential downside of 39.83%. Varonis Systems has a consensus price target of $49.78, indicating a potential downside of 0.14%. Given Varonis Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Varonis Systems is more favorable than Appian.

Summary

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

About Appian

Appian Corporation provides a low-code software development platform as a service that enables organizations to develop applications. Through Company’s platform, organizations can design, build and implement, enterprise-grade custom applications. Decision makers can reimagine their products, services, processes and customer interactions. The Company’s platform automates the creation of forms, data flows, records, reports and other software elements. The Company’s SAIL technology allows developers to create an application once and deploy it everywhere. The Company’s products include business process management (BPM) software, case management, mobile application development and platform as a service. The Company provides its services to a range of industries including energy, insurance, health payers and providers, manufacturing, public sector, retail and transportation.

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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