Analyzing Veeva Systems (VEEV) & Evolent Health (EVH)

Evolent Health (NYSE: EVH) and Veeva Systems (NYSE:VEEV) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Institutional and Insider Ownership

91.6% of Evolent Health shares are owned by institutional investors. Comparatively, 71.3% of Veeva Systems shares are owned by institutional investors. 8.8% of Evolent Health shares are owned by company insiders. Comparatively, 19.2% of Veeva Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Evolent Health -15.86% -5.27% -4.08%
Veeva Systems 18.98% 12.77% 9.34%

Analyst Ratings

This is a summary of current recommendations for Evolent Health and Veeva Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Evolent Health 0 0 13 0 3.00
Veeva Systems 0 4 7 0 2.64

Evolent Health presently has a consensus target price of $28.70, suggesting a potential upside of 157.40%. Veeva Systems has a consensus target price of $65.82, suggesting a potential upside of 7.07%. Given Evolent Health’s stronger consensus rating and higher possible upside, research analysts clearly believe Evolent Health is more favorable than Veeva Systems.

Volatility and Risk

Evolent Health has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Earnings and Valuation

This table compares Evolent Health and Veeva Systems’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Evolent Health $254.19 million 3.00 -$159.74 million ($1.13) -9.87
Veeva Systems $544.04 million 15.67 $68.80 million $0.79 77.81

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

Summary

Veeva Systems beats Evolent Health on 9 of the 13 factors compared between the two stocks.

About Evolent Health

Evolent Health, Inc. is engaged in healthcare delivery and payment. The Company supports health systems and physician organizations in their migration toward value-based care and population health management. The Company provides an end-to-end, technology-enabled services platform for providers. The Company’s platform, powered by its technology, processes and integrated services, enables providers to migrate their economic orientation from fee-for-service (FFS) reimbursement to payment models that reward value-based payment models. The Company’s services include providing its customers, with a population management platform, integrated data and analytics capabilities, pharmacy benefit management (PBM) services and comprehensive health plan administration services. Its value-based operations are empowered and supported by Identifi. Identifi is the Company’s technology platform that aggregates and analyzes data, manages care workflows and engages patients.

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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