Critical Analysis: WiMi Hologram Cloud (NASDAQ:WIMI) and Varonis Systems (NASDAQ:VRNS)

WiMi Hologram Cloud (NASDAQ:WIMI) and Varonis Systems (NASDAQ:VRNS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

1.0% of WiMi Hologram Cloud shares are owned by institutional investors. Comparatively, 95.7% of Varonis Systems shares are owned by institutional investors. 35.6% of WiMi Hologram Cloud 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

WiMi Hologram Cloud has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Varonis Systems has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for WiMi Hologram Cloud and Varonis Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WiMi Hologram Cloud	0	0	0	0	N/A
Varonis Systems	0	6	12	0	2.67

Varonis Systems has a consensus target price of $50.56, suggesting a potential upside of 4.32%. Given Varonis Systems’ higher possible upside, analysts clearly believe Varonis Systems is more favorable than WiMi Hologram Cloud.

Valuation & Earnings

This table compares WiMi Hologram Cloud and Varonis Systems’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WiMi Hologram Cloud	$82.65 million	0.91	-$59.47 million	N/A	N/A
Varonis Systems	$499.16 million	10.83	-$100.92 million	($0.94)	-51.56

WiMi Hologram Cloud has higher earnings, but lower revenue than Varonis Systems.

Profitability

This table compares WiMi Hologram Cloud and Varonis Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WiMi Hologram Cloud	N/A	N/A	N/A
Varonis Systems	-20.38%	-21.33%	-9.40%

Summary

WiMi Hologram Cloud beats Varonis Systems on 6 of the 11 factors compared between the two stocks.

About WiMi Hologram Cloud

WiMi Hologram Cloud Inc. provides augmented reality (AR) based holographic services and products in China. It operates in three segments: AR Advertising Services, AR Entertainment, and Semiconductor Related Products and Services. The company primarily offers holographic AR advertising services and holographic AR entertainment products. Its holographic AR advertising software enables users to insert into video footages real or animated three-dimensional objects; and online holographic AR advertising solution embeds holographic AR ads into films and shows. The company's holographic AR entertainment products consist primarily of payment middleware software, game distribution platform, and holographic mixed reality software. In addition, it engages in the provision of central processing algorithm services, and provides computer chip products to enterprise customers, as well as sells comprehensive solutions for central processing algorithms and related services with software and hardware integration. Further, the company's holographic AR technologies are used in software engineering, content production, cloud, big data, and artificial intelligence. Additionally, it provides hardware performance optimization and software algorithm optimization services to online game developers and game distributors. The company serves a range of industries, including manufacturing, real estate, entertainment, technology, media and telecommunications, travel, education, and retail. WiMi Hologram Cloud Inc. was founded in 2015 and is headquartered in Beijing, the People's Republic of China.

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.