Contrasting IQVIA (NYSE:IQV) and Simulations Plus (NASDAQ:SLP)

Simulations Plus (NASDAQ:SLP) and IQVIA (NYSE:IQV) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

78.1% of Simulations Plus shares are owned by institutional investors. Comparatively, 89.6% of IQVIA shares are owned by institutional investors. 19.1% of Simulations Plus shares are owned by insiders. Comparatively, 1.7% of IQVIA shares are owned by 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.

Earnings and Valuation

This table compares Simulations Plus and IQVIA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simulations Plus	$82.06 million	4.56	-$64.72 million	$0.40	46.25
IQVIA	$16.31 billion	2.78	$1.36 billion	$8.23	33.47

IQVIA has higher revenue and earnings than Simulations Plus. IQVIA is trading at a lower price-to-earnings ratio than Simulations Plus, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Simulations Plus has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, IQVIA has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Simulations Plus and IQVIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simulations Plus	1	5	0	0	1.83
IQVIA	1	2	16	2	2.90

Simulations Plus currently has a consensus target price of $17.25, suggesting a potential downside of 6.76%. IQVIA has a consensus target price of $294.21, suggesting a potential upside of 6.81%. Given IQVIA’s stronger consensus rating and higher possible upside, analysts clearly believe IQVIA is more favorable than Simulations Plus.

Profitability

This table compares Simulations Plus and IQVIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simulations Plus	9.88%	13.50%	12.45%
IQVIA	8.05%	30.02%	6.52%

Summary

IQVIA beats Simulations Plus on 9 of the 15 factors compared between the two stocks.

About Simulations Plus

Simulations Plus, Inc. develops software and provides consulting services for pharmaceutical research and development. Its technology helps scientists model how drugs are absorbed, distributed, metabolized and excreted in the body, supporting decisions throughout the drug-development process. The company’s product portfolio includes GastroPlus, a physiologically based pharmacokinetic modeling platform; ADMET Predictor, which supports the prediction of drug absorption, distribution, metabolism, excretion and toxicity properties; and DILIsym, a platform designed to evaluate the risk of drug-induced liver injury.

About IQVIA

IQVIA Holdings Inc. provides clinical research services, healthcare data and analytics, and technology solutions to pharmaceutical, biotechnology, medical-device, and other healthcare organizations. Its services support the development and commercialization of medicines and other healthcare products. The company’s offerings include clinical trial planning and management, real-world data and evidence, consulting, and software and technology platforms for life sciences research and commercial operations.