Contrasting Veeva Systems (NYSE:VEEV) & Definitive Healthcare (NASDAQ:DH)

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

Profitability

This table compares Veeva Systems and Definitive Healthcare’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%
Definitive Healthcare	-72.28%	3.55%	1.63%

Valuation and Earnings

This table compares Veeva Systems and Definitive Healthcare”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$3.20 billion	15.52	$908.91 million	$6.08	50.36
Definitive Healthcare	$241.52 million	0.53	-$138.93 million	($1.50)	-0.79

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

Insider and Institutional Ownership

88.2% of Veeva Systems shares are owned by institutional investors. Comparatively, 98.7% of Definitive Healthcare shares are owned by institutional investors. 10.6% of Veeva Systems shares are owned by insiders. Comparatively, 17.1% of Definitive Healthcare shares are owned by 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.

Volatility and Risk

Veeva Systems has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Definitive Healthcare has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Veeva Systems and Definitive Healthcare, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	1	8	19	0	2.64
Definitive Healthcare	3	6	0	0	1.67

Veeva Systems presently has a consensus target price of $314.50, indicating a potential upside of 2.70%. Definitive Healthcare has a consensus target price of $1.47, indicating a potential upside of 23.65%. Given Definitive Healthcare’s higher possible upside, analysts clearly believe Definitive Healthcare is more favorable than Veeva Systems.

Summary

Veeva Systems beats Definitive Healthcare on 10 of the 14 factors compared between the two stocks.

About Veeva Systems

Veeva Systems Inc. develops cloud-based software, data and consulting services for the life sciences industry. Its customers include pharmaceutical and biotechnology companies, medical device makers and contract research organizations. The company’s products support commercial operations as well as clinical, regulatory, quality and safety activities. Its offerings include Veeva Vault applications for managing documents and business processes, customer relationship management software, and data and analytics services.

About Definitive Healthcare

Definitive Healthcare Corp. (NASDAQ: DH) provides data, analytics and commercial intelligence solutions for the healthcare industry. Its platform is designed to help organizations understand healthcare markets, identify business opportunities and make data-driven decisions. The company serves pharmaceutical and biotechnology companies, medical device manufacturers, healthcare providers, hospitals and health systems, and other healthcare services organizations. Its offerings include information on healthcare providers and organizations, market intelligence, sales and marketing analytics, clinical trial insights, and tools that support commercial planning, market access and customer engagement.