Veeva Systems (NYSE:VEEV) and Phreesia (NYSE:PHR) Critical Analysis

Phreesia (NYSE:PHR) and Veeva Systems (NYSE:VEEV) are both healthcare companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares Phreesia and Veeva Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phreesia	$480.59 million	1.34	$2.31 million	$0.17	60.81
Veeva Systems	$3.20 billion	13.29	$908.91 million	$6.08	43.14

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

Institutional & Insider Ownership

92.1% of Phreesia shares are owned by institutional investors. Comparatively, 88.2% of Veeva Systems shares are owned by institutional investors. 5.2% of Phreesia shares are owned by insiders. Comparatively, 10.6% of Veeva Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Phreesia has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Phreesia	2.06%	5.22%	3.02%
Veeva Systems	29.34%	14.25%	11.71%

Analyst Ratings

This is a summary of recent ratings and price targets for Phreesia and Veeva Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phreesia	1	10	8	0	2.37
Veeva Systems	1	8	19	0	2.64

Phreesia presently has a consensus target price of $14.00, suggesting a potential upside of 35.44%. Veeva Systems has a consensus target price of $284.88, suggesting a potential upside of 8.61%. Given Phreesia’s higher possible upside, research analysts plainly believe Phreesia is more favorable than Veeva Systems.

Summary

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

About Phreesia

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The company offers access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking management; registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, post-visit payment collection, and flexible payment options; and network connect solution to deliver clinically relevant content to patients. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, a self-service intake tablets; and Arrivals Kiosks, an on-site kiosks. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is based in Wilmington, Delaware.

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.