Analyzing IQVIA (NYSE:IQV) & Simulations Plus (NASDAQ:SLP)

Simulations Plus (NASDAQ:SLP) and IQVIA (NYSE:IQV) are both healthcare companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Valuation and Earnings

This table compares Simulations Plus and IQVIA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simulations Plus	$82.06 million	4.56	-$64.72 million	$0.40	46.25
IQVIA	$16.31 billion	2.69	$1.36 billion	$8.23	32.37

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

Profitability

This table compares Simulations Plus and IQVIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simulations Plus	9.88%	13.50%	12.45%
IQVIA	8.05%	30.02%	6.52%

Risk and Volatility

Simulations Plus has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, IQVIA has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Simulations Plus and IQVIA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simulations Plus	1	5	0	0	1.83
IQVIA	1	2	16	2	2.90

Simulations Plus presently has a consensus price target of $17.25, suggesting a potential downside of 6.76%. IQVIA has a consensus price target of $294.21, suggesting a potential upside of 10.42%. Given IQVIA’s stronger consensus rating and higher probable upside, analysts clearly believe IQVIA is more favorable than Simulations Plus.

Institutional & Insider Ownership

78.1% of Simulations Plus shares are held by institutional investors. Comparatively, 89.6% of IQVIA shares are held by institutional investors. 19.1% of Simulations Plus shares are held by insiders. Comparatively, 1.7% of IQVIA shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

IQVIA beats Simulations Plus on 9 of the 15 factors compared between the two stocks.

About Simulations Plus

Simulations Plus, Inc. develops software and provides consulting services for the pharmaceutical and biotechnology industries. Its tools help researchers model how drugs behave in the body, assess drug properties, and support decisions during drug discovery and development. The company’s products include GastroPlus for physiologically based pharmacokinetic modeling and simulation, ADMET Predictor for estimating absorption, distribution, metabolism, excretion and toxicity properties, and MonolixSuite for pharmacometrics and quantitative pharmacology.

About IQVIA

IQVIA Holdings Inc. provides clinical research services, healthcare data and analytics, and technology solutions to pharmaceutical, biotechnology, medical-device, and other healthcare organizations. Its services support the development and commercialization of medicines and other healthcare products. The company’s offerings include clinical trial planning and management, real-world data and evidence, consulting, and software and technology platforms for life sciences research and commercial operations.