Veeva Systems (NYSE: VEEV) and Complete Genomics (NASDAQ:GNOM) are both healthcare companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Veeva Systems and Complete Genomics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Veeva Systems $544.04 million 15.97 $68.80 million $0.83 75.46
Complete Genomics N/A N/A N/A ($2.35) -1.34

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

Net Margins Return on Equity Return on Assets
Veeva Systems 18.98% 12.77% 9.34%
Complete Genomics N/A N/A N/A

Institutional and Insider Ownership

71.8% of Veeva Systems shares are held by institutional investors. 17.5% of Veeva Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Veeva Systems and Complete Genomics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeva Systems 0 4 7 0 2.64
Complete Genomics 0 0 0 0 N/A

Veeva Systems presently has a consensus target price of $65.82, suggesting a potential upside of 5.09%. Given Veeva Systems’ higher possible upside, equities analysts clearly believe Veeva Systems is more favorable than Complete Genomics.

Summary

Veeva Systems beats Complete Genomics on 9 of the 9 factors compared between the two stocks.

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.

Complete Genomics Company Profile

Complete Genomics, Inc. is a life sciences company that has developed and commercialized a deoxyribonucleic acid (DNA) sequencing platform. Its complete genomics analysis platform (CGA) Platform, combines its human genome sequencing technology with its advanced informatics and data management software and its end-to-end, outsourced service model to provide its customers with data that is ready to be used for genome-based research. Its genome sequencing center combines a high-throughput sample preparation facility, a collection of its high-throughput sequencing instruments and a large- scale data center. Its customers include some of the global academic and government research centers and biopharmaceutical companies. Effective March 18, 2013, BGI-Shenzhen announced that through its wholly-owned subsidiary, Beta Acquisition Corporation, it has completed the acquisition of the Company.

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