Analyzing Varonis Systems (NASDAQ:VRNS) and Coveo Solutions (OTCMKTS:CVOSF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Coveo Solutions	N/A	N/A	N/A
Varonis Systems	-20.55%	-19.18%	-5.97%

Earnings and Valuation

This table compares Coveo Solutions and Varonis Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coveo Solutions	N/A	N/A	N/A	N/A	N/A
Varonis Systems	$623.53 million	7.82	-$129.32 million	($1.23)	-34.50

Coveo Solutions has higher earnings, but lower revenue than Varonis Systems.

Analyst Recommendations

This is a breakdown of current ratings for Coveo Solutions and Varonis Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coveo Solutions	0	0	0	0	0.00
Varonis Systems	1	6	17	0	2.67

Varonis Systems has a consensus target price of $49.05, indicating a potential upside of 15.58%. Given Varonis Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Varonis Systems is more favorable than Coveo Solutions.

Institutional and Insider Ownership

95.7% of Varonis Systems shares are owned by institutional investors. 3.0% of Varonis Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Varonis Systems beats Coveo Solutions on 6 of the 9 factors compared between the two stocks.

About Coveo Solutions

Coveo Solutions Inc. provides AI platforms that enable individualized, connected, and trusted digital experiences. The Relevance Cloud platform, an AI solution that integrates AI search, recommendations, GenAI answering, AI models, and analytics across various digital domains; and is designed for scale, security, and compliance and integrates into enterprise ecosystems as a cloud-native SaaS, multi-tenant, API-first, and headless platform. Its Relevance Generative Answering capability unifies LLM technology with its platform, ensuring scalable relevance, factuality, and traceable data sources, as well as addresses the unique challenges of deploying generative AI for enterprise use cases, enabling global brands to achieve tangible financial value through digital experiences. The company serves high tech, healthcare, manufacturing, financial services, retail, and telecommunication industries. Coveo Solutions Inc. has strategic relationships with Salesforce, Adobe, SAP, ServiceNow, Zendesk, Sitecore, AppDirect, and commercetools. The company was formerly known as Copernic Business Solutions Inc. and changed its name to Coveo Solutions Inc. in October 2004. Coveo Solutions Inc. was incorporated in 2004 and is headquartered in Québec, Canada.

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.