athenahealth (NASDAQ: ATHN) and Veeva Systems (NYSE:VEEV) are both mid-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Earnings & Valuation
This table compares athenahealth and Veeva Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|athenahealth||$1.08 billion||4.60||$21.00 million||$0.77||161.74|
|Veeva Systems||$544.04 million||15.67||$68.80 million||$0.79||77.81|
Veeva Systems has higher revenue, but lower earnings than athenahealth. Veeva Systems is trading at a lower price-to-earnings ratio than athenahealth, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
athenahealth has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for athenahealth and Veeva Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
athenahealth presently has a consensus price target of $141.77, indicating a potential upside of 13.84%. Veeva Systems has a consensus price target of $65.82, indicating a potential upside of 7.07%. Given athenahealth’s higher possible upside, research analysts clearly believe athenahealth is more favorable than Veeva Systems.
This table compares athenahealth and Veeva Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
71.4% of Veeva Systems shares are held by institutional investors. 3.2% of athenahealth shares are held by insiders. Comparatively, 17.5% of Veeva Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Veeva Systems beats athenahealth on 10 of the 14 factors compared between the two stocks.
athenahealth, Inc. provides network-based medical record, revenue cycle, patient engagement, care coordination and population health services. The Company also offers Epocrates and other point-of-care mobile applications. The Company delivers majority of its service offerings through a single instance of cloud-based software, athenaNet. The Company has a range of network-enabled services to support healthcare providers across the continuum of care. The Company offers various combinations of its services to its clients, including athenaOne and athenaOne for Hospitals and Health Systems, depending on whether they are medical groups and practices or hospitals and larger health systems. As of December 31, 2016, the Company connected care across a national network of approximately 88,000 providers and approximately 86 million patients. Its suite of network-enabled services includes athenaCollector, athenaClinicals, athenaCommunicator, athenaCoordinator, Population Health and Epocrates.
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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