Comparing Definitive Healthcare (NASDAQ:DH) and Veeva Systems (NYSE:VEEV)

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Definitive Healthcare and Veeva Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Definitive Healthcare	3	6	0	0	1.67
Veeva Systems	1	8	19	0	2.64

Definitive Healthcare presently has a consensus target price of $1.47, suggesting a potential upside of 23.65%. Veeva Systems has a consensus target price of $314.50, suggesting a potential upside of 2.70%. Given Definitive Healthcare’s higher probable upside, research analysts plainly believe Definitive Healthcare is more favorable than Veeva Systems.

Profitability

This table compares Definitive Healthcare and Veeva Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Definitive Healthcare	-72.28%	3.55%	1.63%
Veeva Systems	29.34%	14.25%	11.71%

Risk and Volatility

Definitive Healthcare has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Definitive Healthcare	$241.52 million	0.53	-$138.93 million	($1.50)	-0.79
Veeva Systems	$3.20 billion	15.52	$908.91 million	$6.08	50.36

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

Institutional and Insider Ownership

98.7% of Definitive Healthcare shares are held by institutional investors. Comparatively, 88.2% of Veeva Systems shares are held by institutional investors. 17.1% of Definitive Healthcare shares are held by company insiders. Comparatively, 10.6% of Veeva Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Veeva Systems beats Definitive Healthcare on 10 of the 14 factors compared between the two stocks.

About Definitive Healthcare

Definitive Healthcare Corp. (NASDAQ: DH) provides data, analytics and commercial intelligence solutions for the healthcare industry. Its platform is designed to help organizations understand healthcare markets, identify business opportunities and make data-driven decisions. The company serves pharmaceutical and biotechnology companies, medical device manufacturers, healthcare providers, hospitals and health systems, and other healthcare services organizations. Its offerings include information on healthcare providers and organizations, market intelligence, sales and marketing analytics, clinical trial insights, and tools that support commercial planning, market access and customer engagement.

About Veeva Systems

Veeva Systems Inc. develops cloud-based software, data and consulting services for the life sciences industry. Its customers include pharmaceutical and biotechnology companies, medical device makers and contract research organizations. The company’s products support commercial operations as well as clinical, regulatory, quality and safety activities. Its offerings include Veeva Vault applications for managing documents and business processes, customer relationship management software, and data and analytics services.