Inspire Medical Systems (NYSE:INSP – Get Free Report) and Veeva Systems (NYSE:VEEV – Get Free Report) are both medical companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.
Insider and Institutional Ownership
94.9% of Inspire Medical Systems shares are held by institutional investors. Comparatively, 88.2% of Veeva Systems shares are held by institutional investors. 4.1% of Inspire Medical Systems shares are held by insiders. Comparatively, 10.3% of Veeva Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Inspire Medical Systems and Veeva Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Inspire Medical Systems | 15.95% | 10.96% | 9.32% |
| Veeva Systems | 28.44% | 14.11% | 11.76% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Inspire Medical Systems | 1 | 13 | 5 | 0 | 2.21 |
| Veeva Systems | 1 | 7 | 17 | 0 | 2.64 |
Inspire Medical Systems presently has a consensus price target of $104.24, indicating a potential upside of 93.94%. Veeva Systems has a consensus price target of $283.70, indicating a potential upside of 54.05%. Given Inspire Medical Systems’ higher possible upside, analysts plainly believe Inspire Medical Systems is more favorable than Veeva Systems.
Risk & Volatility
Inspire Medical Systems has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.
Earnings and Valuation
This table compares Inspire Medical Systems 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 | |
| Inspire Medical Systems | $911.98 million | 1.68 | $145.42 million | $4.98 | 10.79 |
| Veeva Systems | $3.20 billion | 9.47 | $908.91 million | $5.41 | 34.04 |
Veeva Systems has higher revenue and earnings than Inspire Medical Systems. Inspire Medical Systems 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 Inspire Medical Systems on 12 of the 14 factors compared between the two stocks.
About Inspire Medical Systems
Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally. The company offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe OSA. It also develops a novel, closed-loop solution that continuously monitors a patient's breathing and delivers mild hypoglossal nerve stimulation to maintain an open airway. The company was incorporated in 2007 and is headquartered in Golden Valley, Minnesota.
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.
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