Analyzing Doximity (NYSE:DOCS) & Veeva Systems (NYSE:VEEV)

Veeva Systems (NYSE:VEEV) and Doximity (NYSE:DOCS) are both healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Earnings & Valuation

This table compares Veeva Systems and Doximity”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$3.20 billion	13.58	$908.91 million	$6.08	44.07
Doximity	$644.86 million	7.33	$196.05 million	$0.85	31.20

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

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	29.34%	14.25%	11.71%
Doximity	25.48%	18.06%	15.40%

Risk and Volatility

Veeva Systems has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Doximity has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Veeva Systems and Doximity, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	1	8	19	0	2.64
Doximity	3	14	7	1	2.24

Veeva Systems presently has a consensus target price of $284.88, indicating a potential upside of 6.33%. Doximity has a consensus target price of $32.18, indicating a potential upside of 21.34%. Given Doximity’s higher possible upside, analysts plainly believe Doximity is more favorable than Veeva Systems.

Insider and Institutional Ownership

88.2% of Veeva Systems shares are owned by institutional investors. Comparatively, 87.2% of Doximity shares are owned by institutional investors. 10.6% of Veeva Systems shares are owned by company insiders. Comparatively, 31.8% of Doximity shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Veeva Systems beats Doximity on 9 of the 15 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 Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company’s cloud-based platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical companies and health systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.