Financial Review: ZoomInfo Technologies (NASDAQ:ZI) vs. Varonis Systems (NASDAQ:VRNS)

ZoomInfo Technologies (NASDAQ:ZI) and Varonis Systems (NASDAQ:VRNS) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for ZoomInfo Technologies and Varonis Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	5	13	3	0	1.90
Varonis Systems	0	5	11	1	2.76

ZoomInfo Technologies currently has a consensus price target of $11.92, indicating a potential upside of 8.18%. Varonis Systems has a consensus price target of $59.38, indicating a potential upside of 49.45%. Given Varonis Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Varonis Systems is more favorable than ZoomInfo Technologies.

Insider and Institutional Ownership

95.5% of ZoomInfo Technologies shares are owned by institutional investors. Comparatively, 95.7% of Varonis Systems shares are owned by institutional investors. 8.1% of ZoomInfo Technologies shares are owned by insiders. Comparatively, 2.6% of Varonis Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

ZoomInfo Technologies has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Varonis Systems has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	0.74%	12.05%	3.46%
Varonis Systems	-17.38%	-20.35%	-6.85%

Earnings & Valuation

This table compares ZoomInfo Technologies and Varonis Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.21 billion	3.12	$107.30 million	$0.08	137.75
Varonis Systems	$550.95 million	8.12	-$95.76 million	($0.86)	-46.20

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

Summary

ZoomInfo Technologies beats Varonis Systems on 9 of the 15 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.

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.