HealthEquity (NASDAQ: HQY) and Veeva Systems (NYSE:VEEV) are both mid-cap medical companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Volatility & Risk

HealthEquity has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Valuation and Earnings

This table compares HealthEquity and Veeva Systems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
HealthEquity $202.47 million 14.15 $61.84 million $0.67 70.67
Veeva Systems $617.44 million 12.68 $154.55 million $0.79 70.48

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

Analyst Ratings

This is a summary of recent ratings and price targets for HealthEquity and Veeva Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HealthEquity 0 1 8 0 2.89
Veeva Systems 0 5 7 0 2.58

HealthEquity currently has a consensus target price of $57.00, suggesting a potential upside of 20.38%. Veeva Systems has a consensus target price of $63.92, suggesting a potential upside of 14.79%. Given HealthEquity’s stronger consensus rating and higher possible upside, equities research analysts plainly believe HealthEquity is more favorable than Veeva Systems.

Profitability

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

Net Margins Return on Equity Return on Assets
HealthEquity 20.27% 13.93% 13.27%
Veeva Systems 18.98% 12.77% 9.34%

Insider & Institutional Ownership

91.0% of HealthEquity shares are owned by institutional investors. Comparatively, 71.5% of Veeva Systems shares are owned by institutional investors. 29.0% of HealthEquity shares are owned by insiders. Comparatively, 19.2% of Veeva Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

HealthEquity beats Veeva Systems on 11 of the 14 factors compared between the two stocks.

HealthEquity Company Profile

HealthEquity, Inc. provides a range of solutions for managing healthcare accounts (Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs)) for health plans, insurance companies and third-party administrators. The Company is engaged in technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. Its platform provides an ecosystem where consumers can access their tax-advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives and make educated investment choices to help in their tax-advantaged healthcare savings. Its products and services include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements and healthcare incentives. Its ecosystem primarily consists of HSA.

Veeva Systems Company Profile

Veeva Systems Inc. (Veeva) is a provider of cloud-based software solutions for the global life sciences industry. The Company offers solutions for a range of requirements within life sciences companies, including multichannel customer relationship management, regulated content and information management, master data management and customer data. The Company offers solutions to areas, including the Veeva CRM family of applications for multichannel customer relationship management to enable coordinated and personalized customer engagement through multiple touch points; Veeva Vault for regulated content management and information management solutions to enable the management of content-centric processes; the Veeva Network master data management solutions for the management of customer master and product master data, and Veeva’s data and data services offerings, including Veeva OpenData for customer reference data and Veeva KOL Data for data.

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