Contrasting Cloudward (OTCMKTS:CDWD) and Varonis Systems (NASDAQ:VRNS)

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

Institutional & Insider Ownership

95.7% of Varonis Systems shares are owned by institutional investors. 27.8% of Cloudward shares are owned by company insiders. Comparatively, 2.6% 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 company will outperform the market over the long term.

Earnings and Valuation

This table compares Cloudward and Varonis Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cloudward	N/A	N/A	N/A	N/A	N/A
Varonis Systems	$520.78 million	12.04	-$100.92 million	($0.94)	-59.82

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cloudward and Varonis Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cloudward	0	0	0	0	N/A
Varonis Systems	0	5	12	1	2.78

Varonis Systems has a consensus target price of $56.33, indicating a potential upside of 0.18%. Given Varonis Systems’ higher probable upside, analysts clearly believe Varonis Systems is more favorable than Cloudward.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cloudward	N/A	N/A	N/A
Varonis Systems	-16.97%	-18.31%	-7.91%

Summary

Varonis Systems beats Cloudward on 5 of the 9 factors compared between the two stocks.

About Cloudward

Cloudward, Inc. operates a Web application distribution platform that delivers Web applications for businesses. The company provides a software-as-a-service (SaaS) ecosystem for building, distributing, and using Web Applications, including a marketplace to deploy and support them. It enables software manufacturers to migrate existing applications or create new applications, as well as package, distribute, host, bill, market, and support the SaaS enabled applications through private label applications marketplaces. The company also develops products for Web applications, which include open standards-based tools, such as the Etelos Application Server and the Etelos Development Environment that support various common programming languages; the English Application Scripting Engine, an open standards-based scripting language for Web developers, businesses, and individual users; and Etelos App Sync, which integrates Web Applications built on its platform with other Web applications. In addition, the company offers Etelos Platform Suite, which allows third parties to use its software platforms and services to develop and operate a private label application and marketplace; and Etelos Web Application Hosting. Further, it provides professional services, including consulting and implementation services; and customer support and management. Cloudward, Inc. serves independent software vendors and marketplace partners, including non-technology businesses in North America, South America, Europe, and the Asia-Pacific region. The company was formerly known as Etelos, Inc. and changed its name to Cloudward, Inc. in August 2012. Cloudward, Inc. was founded in 1999 and is headquartered in Larkspur, California.

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.