Definitive Healthcare (NASDAQ:DH – Get Free Report) and Veeva Systems (NYSE:VEEV – Get Free Report) are both healthcare companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Risk and Volatility
Definitive Healthcare has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Profitability
This table compares Definitive Healthcare and Veeva Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Definitive Healthcare | -69.18% | 4.35% | 1.84% |
| Veeva Systems | 29.34% | 14.25% | 11.71% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Definitive Healthcare | 3 | 6 | 0 | 0 | 1.67 |
| Veeva Systems | 1 | 8 | 19 | 0 | 2.64 |
Definitive Healthcare currently has a consensus target price of $1.47, indicating a potential upside of 12.32%. Veeva Systems has a consensus target price of $317.42, indicating a potential upside of 5.28%. Given Definitive Healthcare’s higher probable upside, research analysts plainly believe Definitive Healthcare is more favorable than Veeva Systems.
Earnings & Valuation
This table compares Definitive Healthcare and Veeva Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Definitive Healthcare | $241.52 million | 0.58 | -$138.93 million | ($1.50) | -0.87 |
| Veeva Systems | $3.20 billion | 15.28 | $908.91 million | $6.08 | 49.59 |
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.
Institutional and Insider Ownership
98.7% of Definitive Healthcare shares are held by institutional investors. Comparatively, 88.2% of Veeva Systems shares are held by institutional investors. 17.1% of Definitive Healthcare shares are held by company insiders. Comparatively, 10.6% of Veeva Systems shares are held 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.
Summary
Veeva Systems beats Definitive Healthcare on 10 of the 14 factors compared between the two stocks.
About Definitive Healthcare
Definitive Healthcare provides data and analytics software for organizations across the healthcare industry. Its platform brings together information on healthcare providers, facilities, services and market activity to help customers understand the healthcare landscape and make business decisions. The company serves customers including life sciences and medical technology companies, healthcare providers, health plans and consulting firms. Its tools support activities such as identifying and evaluating healthcare professionals and organizations, assessing markets, planning sales and marketing efforts, and analyzing provider networks.
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.
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