Reviewing DarioHealth (NASDAQ:DRIO) and Veeva Systems (NYSE:VEEV)

Veeva Systems (NYSE:VEEV) and DarioHealth (NASDAQ:DRIO) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Valuation and Earnings

This table compares Veeva Systems and DarioHealth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$3.20 billion	13.84	$908.91 million	$6.08	44.94
DarioHealth	$22.36 million	2.83	-$41.71 million	($6.13)	-1.05

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Veeva Systems and DarioHealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	1	8	19	0	2.64
DarioHealth	1	1	2	0	2.25

Veeva Systems presently has a consensus price target of $284.88, indicating a potential upside of 4.27%. DarioHealth has a consensus price target of $10.00, indicating a potential upside of 54.80%. Given DarioHealth’s higher probable upside, analysts clearly believe DarioHealth is more favorable than Veeva Systems.

Risk & Volatility

Veeva Systems has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Insider & Institutional Ownership

88.2% of Veeva Systems shares are held by institutional investors. Comparatively, 33.4% of DarioHealth shares are held by institutional investors. 10.6% of Veeva Systems shares are held by company insiders. Comparatively, 3.5% of DarioHealth shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Veeva Systems and DarioHealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	29.34%	14.25%	11.71%
DarioHealth	-169.87%	-54.81%	-33.36%

Summary

Veeva Systems beats DarioHealth on 12 of the 14 factors compared between the two stocks.

About Veeva Systems

Veeva Systems Inc. provides cloud-based software for the life sciences industry. It offers Veeva Commercial Cloud, a suite of software and analytics solutions, such as Veeva customer relationship management (CRM) that enable customer-facing employees at pharmaceutical and biotechnology companies; Veeva Vault PromoMats, an end-to-end content and digital asset management solution; Veeva Vault Medical that provides source of medical content across multiple channels and geographies; Veeva Crossix, an analytics platform for pharmaceutical brands; Veeva OpenData, a customer reference data solution; Veeva Link, a data application that allows link to generate real-time intelligence; and Veeva Compass includes de-identified and longitudinal patient data for the United States. The company also provides Veeva Development Cloud, a suite of applications for the clinical, regulatory, quality, and safety functions, including Veeva Vault Clinical, Veeva Vault RIM, Veeva Vault Safety, and Veeva Vault Quality; Veeva QualityOne, a quality and document management, and training solution; Veeva RegulatoryOne, a solution that helps companies to manage regulatory submission content; and Veeva Claims addresses the end-to-end product and marketing claims management process. In addition, it offers professional and support services, including implementation and deployment planning and project management; requirements analysis, solution design, and configuration; systems environment management and deployment services; services focused on advancing or transforming business and operating processes related to Veeva solutions; data migration and systems integrations technical consulting services; training on its solutions; and ongoing managed services, such as outsourced systems administration. The company was formerly known as Verticals onDemand, Inc. and changed its name to Veeva Systems Inc. in April 2009. Veeva Systems Inc. was incorporated in 2007 and is headquartered in Pleasanton, California.

About DarioHealth

DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.