Veeva Systems (NYSE:VEEV) vs. Tempus AI (NASDAQ:TEM) Critical Comparison

Tempus AI (NASDAQ:TEM) and Veeva Systems (NYSE:VEEV) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Risk & Volatility

Tempus AI has a beta of 5.22, suggesting that its share price is 422% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares Tempus AI and Veeva Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tempus AI	-18.45%	-73.21%	-13.78%
Veeva Systems	27.93%	13.68%	11.27%

Analyst Recommendations

This is a summary of recent recommendations for Tempus AI and Veeva Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tempus AI	1	6	6	0	2.38
Veeva Systems	2	6	18	0	2.62

Tempus AI currently has a consensus price target of $87.20, suggesting a potential upside of 55.80%. Veeva Systems has a consensus price target of $308.04, suggesting a potential upside of 61.61%. Given Veeva Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Veeva Systems is more favorable than Tempus AI.

Insider & Institutional Ownership

24.2% of Tempus AI shares are held by institutional investors. Comparatively, 88.2% of Veeva Systems shares are held by institutional investors. 26.3% of Tempus AI shares are held by company insiders. Comparatively, 10.3% of Veeva Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Tempus AI and Veeva Systems”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tempus AI	$693.40 million	14.36	-$705.81 million	($1.19)	-47.03
Veeva Systems	$2.75 billion	11.41	$714.14 million	$5.14	37.08

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

Summary

Veeva Systems beats Tempus AI on 11 of the 14 factors compared between the two stocks.

About Tempus AI

Tempus AI Inc. is a technology company advancing precision medicine through the practical application of artificial intelligence principally in healthcare. The company provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. Tempus AI Inc. is based in CHICAGO.

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.