Financial Comparison: Veeva Systems (NYSE:VEEV) and NantHealth (NH)

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

Insider and Institutional Ownership

6.9% of NantHealth shares are held by institutional investors. Comparatively, 69.9% of Veeva Systems shares are held by institutional investors. 58.0% of NantHealth shares are held by company insiders. Comparatively, 17.5% of Veeva Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NantHealth and Veeva Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NantHealth 0 0 4 0 3.00
Veeva Systems 0 2 9 0 2.82

NantHealth currently has a consensus target price of $9.00, suggesting a potential upside of 204.05%. Veeva Systems has a consensus target price of $68.36, suggesting a potential upside of 20.53%. Given NantHealth’s stronger consensus rating and higher possible upside, analysts plainly believe NantHealth is more favorable than Veeva Systems.

Risk and Volatility

NantHealth has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Valuation and Earnings

This table compares NantHealth and Veeva Systems’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NantHealth $100.38 million 3.19 -$184.10 million ($1.78) -1.66
Veeva Systems $544.04 million 14.74 $68.80 million $0.91 62.33

Veeva Systems has higher revenue and earnings than NantHealth. NantHealth 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 NantHealth and Veeva Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NantHealth -225.76% -46.09% -25.23%
Veeva Systems 19.97% 12.21% 9.01%

Summary

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

About NantHealth

NantHealth, Inc. is a healthcare cloud-based information technology (IT) company. The Company is engaged in converging science and technology through a single integrated clinical platform, to provide actionable health information at the point of care. The Company offers the Genomic Proteomic Spectrometry (GPS) Cancer test, a molecular test and decision support solution that measures the proteins present in the patient’s tumor tissue, combined with whole genomic and transcriptomic sequencing of tumor and normal samples. The Company also offers Nant Operating System (NantOS) and NantOS applications to healthcare providers and payors, self-insured employers and biopharmaceutical companies. It offers CLINICS, an integrated solution that includes GPS Cancer, NantOS and the NantOS applications. The CLINICS solution includes System Infrastructure, Knowledge Platform, Provider Platform and Payor Platform.

About Veeva Systems

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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