Head to Head Survey: Veeva Systems (NYSE:VEEV) versus Fulgent Genetics (NASDAQ:FLGT)

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

Institutional and Insider Ownership

88.2% of Veeva Systems shares are owned by institutional investors. Comparatively, 48.1% of Fulgent Genetics shares are owned by institutional investors. 10.6% of Veeva Systems shares are owned by company insiders. Comparatively, 36.2% of Fulgent Genetics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Veeva Systems and Fulgent Genetics”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	8.20	$908.91 million	$5.41	29.65
Fulgent Genetics	$322.67 million	1.58	-$60.51 million	($2.39)	-7.16

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	28.44%	13.80%	11.39%
Fulgent Genetics	-23.04%	-3.24%	-2.97%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Veeva Systems and Fulgent Genetics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	1	9	16	0	2.58
Fulgent Genetics	1	2	2	0	2.20

Veeva Systems presently has a consensus price target of $276.52, indicating a potential upside of 72.39%. Fulgent Genetics has a consensus price target of $27.00, indicating a potential upside of 57.80%. Given Veeva Systems’ stronger consensus rating and higher possible upside, research analysts plainly believe Veeva Systems is more favorable than Fulgent Genetics.

Risk and Volatility

Veeva Systems has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Fulgent Genetics has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Summary

Veeva Systems beats Fulgent Genetics on 13 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 Fulgent Genetics

Fulgent Genetics, Inc., together with its subsidiaries, provides clinical diagnostic and therapeutic development solutions to physicians and patients in the United States and internationally. The company’s clinical diagnostic solutions include molecular diagnostic testing; genetic testing; anatomic pathology laboratory tests and testing services, such as gastrointestinal pathology, dermatopathology, urologic pathology, breast pathology, neuropathology, and hematopathology; oncology tests and testing services; and sequencer services related to hereditary cancer, reproductive health, and other diseases. Its therapeutic development solutions focus on developing drug candidates for treating a range of cancers using a nanoencapsulation and targeted therapy platform to enhance the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The company operates picture genetics platform, which includes gene probes, data suppression and comparison algorithms, adaptive learning software, and proprietary laboratory information management systems that helps customers to identify health markers in their personal DNA. It serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. The company was formerly known as Fulgent Diagnostics, Inc. and changed its name to Fulgent Genetics, Inc. in August 2016. Fulgent Genetics, Inc. was founded in 2011 and is headquartered in El Monte, California.