Analyzing Veeva Systems (NYSE:VEEV) & Precipio (NASDAQ:PRPO)

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

Risk and Volatility

Veeva Systems has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Precipio has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

88.2% of Veeva Systems shares are held by institutional investors. Comparatively, 10.5% of Precipio shares are held by institutional investors. 10.6% of Veeva Systems shares are held by insiders. Comparatively, 16.6% of Precipio shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	28.37%	13.72%	11.31%
Precipio	-3.57%	-6.73%	-4.49%

Analyst Recommendations

This is a summary of current recommendations and price targets for Veeva Systems and Precipio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	1	8	18	0	2.63
Precipio	1	0	0	0	1.00

Veeva Systems currently has a consensus price target of $250.96, suggesting a potential upside of 54.83%. Given Veeva Systems’ stronger consensus rating and higher probable upside, research analysts clearly believe Veeva Systems is more favorable than Precipio.

Valuation & Earnings

This table compares Veeva Systems and Precipio”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	8.24	$908.91 million	$5.61	28.89
Precipio	$24.05 million	1.67	-$360,000.00	($0.47)	-47.74

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

Summary

Veeva Systems beats Precipio 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 Precipio

Precipio, Inc., a healthcare solutions company, provides diagnostic products, reagents, and services in the United States. It provides diagnostic blood cancer testing services. The company offers IV-Cell, a proprietary cell culture media that enables simultaneous culturing of four hematopoietic cell lineages; and HemeScreen, a suite of robust genetic diagnostic panels. It offers biomarker testing and clinical project services to bio-pharma customers. The company is based in New Haven, Connecticut.