Veeva Systems (NYSE:VEEV) & Tempus AI (NASDAQ:TEM) Head-To-Head Survey

Veeva Systems (NYSE:VEEV) and Tempus AI (NASDAQ:TEM) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Analyst Recommendations

This is a breakdown of current ratings for Veeva Systems and Tempus AI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	2	6	18	0	2.62
Tempus AI	1	6	6	0	2.38

Veeva Systems currently has a consensus target price of $308.04, indicating a potential upside of 67.75%. Tempus AI has a consensus target price of $87.20, indicating a potential upside of 58.81%. Given Veeva Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe Veeva Systems is more favorable than Tempus AI.

Valuation and Earnings

This table compares Veeva Systems and Tempus AI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$3.08 billion	9.80	$714.14 million	$5.14	35.73
Tempus AI	$693.40 million	14.09	-$705.81 million	($1.19)	-46.14

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

Volatility and Risk

Veeva Systems has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Tempus AI has a beta of 5.22, meaning that its share price is 422% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	27.93%	13.68%	11.27%
Tempus AI	-18.45%	-73.21%	-13.78%

Institutional & Insider Ownership

88.2% of Veeva Systems shares are held by institutional investors. Comparatively, 24.2% of Tempus AI shares are held by institutional investors. 10.3% of Veeva Systems shares are held by company insiders. Comparatively, 26.3% of Tempus AI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Veeva Systems beats Tempus AI on 11 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 Tempus AI

Tempus AI Inc. is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. Tempus AI Inc. is based in CHICAGO.