Upland Software (NASDAQ:UPLD – Get Free Report) and Varonis Systems (NASDAQ:VRNS – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Risk & Volatility
Upland Software has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Varonis Systems has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.
Valuation & Earnings
This table compares Upland Software and Varonis Systems”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Upland Software | $216.88 million | 0.04 | -$38.90 million | ($14.43) | -0.21 |
| Varonis Systems | $623.53 million | 8.57 | -$129.32 million | ($1.23) | -37.85 |
Upland Software has higher earnings, but lower revenue than Varonis Systems. Varonis Systems is trading at a lower price-to-earnings ratio than Upland Software, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Upland Software and Varonis Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Upland Software | -18.50% | -46.06% | 6.92% |
| Varonis Systems | -20.55% | -19.18% | -5.97% |
Analyst Recommendations
This is a breakdown of current ratings for Upland Software and Varonis Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Upland Software | 1 | 0 | 2 | 0 | 2.33 |
| Varonis Systems | 1 | 7 | 16 | 0 | 2.62 |
Upland Software presently has a consensus target price of $12.50, indicating a potential upside of 314.04%. Varonis Systems has a consensus target price of $49.95, indicating a potential upside of 7.30%. Given Upland Software’s higher probable upside, equities analysts clearly believe Upland Software is more favorable than Varonis Systems.
Institutional & Insider Ownership
77.8% of Upland Software shares are held by institutional investors. Comparatively, 95.7% of Varonis Systems shares are held by institutional investors. 14.6% of Upland Software shares are held by insiders. Comparatively, 3.0% of Varonis Systems shares are held 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.
About Upland Software
Upland Software, Inc., together with its subsidiaries, provides cloud-based software applications under the Upland brand name in the United States, the United Kingdom, Canada, and internationally. It offers software applications that enable organizations to plan, manage and execute projects, and work in the areas of marketing, sales, contact center, knowledge management, project management, information technology, business operations, human resources, and legal. The company also provides professional services, such as implementation, data extraction, integration and configuration, and training services, as well as customer support services. It serves corporations, government agencies, and small and medium-sized businesses in the financial, consulting, technology, manufacturing, media, telecommunication, insurance, non-profit healthcare, life sciences, retail, and hospitality sectors. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was incorporated in 2010 and is headquartered in Austin, Texas.
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.
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