Critical Comparison: Allscripts Healthcare Solutions (MDRX) versus Veeva Systems (VEEV)
Allscripts Healthcare Solutions (NASDAQ: MDRX) and Veeva Systems (NYSE:VEEV) are both mid-cap medical companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.
This table compares Allscripts Healthcare Solutions and Veeva Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Allscripts Healthcare Solutions||-11.54%||5.97%||1.96%|
Insider & Institutional Ownership
71.5% of Veeva Systems shares are held by institutional investors. 0.8% of Allscripts Healthcare Solutions shares are held by insiders. Comparatively, 19.2% of Veeva Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for Allscripts Healthcare Solutions and Veeva Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Allscripts Healthcare Solutions||1||7||9||0||2.47|
Allscripts Healthcare Solutions presently has a consensus target price of $14.47, indicating a potential upside of 10.86%. Veeva Systems has a consensus target price of $63.92, indicating a potential upside of 12.21%. Given Veeva Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Veeva Systems is more favorable than Allscripts Healthcare Solutions.
Valuation and Earnings
This table compares Allscripts Healthcare Solutions and Veeva Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Allscripts Healthcare Solutions||$1.66 billion||1.42||$160.09 million||($1.06)||-12.31|
|Veeva Systems||$617.44 million||12.92||$154.55 million||$0.79||72.10|
Allscripts Healthcare Solutions has higher revenue and earnings than Veeva Systems. Allscripts Healthcare Solutions is trading at a lower price-to-earnings ratio than Veeva Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Allscripts Healthcare Solutions has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.
Veeva Systems beats Allscripts Healthcare Solutions on 11 of the 14 factors compared between the two stocks.
Allscripts Healthcare Solutions Company Profile
Allscripts Healthcare Solutions, Inc. (Allscripts) delivers information technology (IT) solutions and services to help healthcare organizations. The Company operates through three segments: Clinical and Financial Solutions, Population Health, and Netsmart. The Clinical and Financial Solutions segment includes the sale of integrated clinical software applications and financial and information solutions. The Population Health segment includes the sale of health management and coordinated care solutions, which focus on hospitals, health systems, other care facilities and accountable care organizations (ACOs). The Netsmart segment provides software and technology solutions to the health and human services industry, which includes behavioral health, addiction treatment, intellectual and developmental disability services, child and family services and public health segments, as well as to post-acute home care organizations.
Veeva Systems Company Profile
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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