Comparing Veeva Systems (NYSE:VEEV) & Weave Communications (NYSE:WEAV)

Weave Communications (NYSE:WEAV) and Veeva Systems (NYSE:VEEV) are both healthcare companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Insider & Institutional Ownership

86.8% of Weave Communications shares are owned by institutional investors. Comparatively, 88.2% of Veeva Systems shares are owned by institutional investors. 16.4% of Weave Communications shares are owned by company insiders. Comparatively, 10.6% of Veeva Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Weave Communications has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Weave Communications and Veeva Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weave Communications	1	5	2	0	2.12
Veeva Systems	1	8	19	0	2.64

Weave Communications presently has a consensus price target of $7.84, suggesting a potential upside of 7.40%. Veeva Systems has a consensus price target of $284.46, suggesting a potential upside of 2.59%. Given Weave Communications’ higher possible upside, analysts clearly believe Weave Communications is more favorable than Veeva Systems.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Weave Communications	-7.97%	-21.14%	-8.41%
Veeva Systems	29.34%	14.25%	11.71%

Earnings and Valuation

This table compares Weave Communications and Veeva Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weave Communications	$239.02 million	2.44	-$28.05 million	($0.25)	-29.20
Veeva Systems	$3.20 billion	14.10	$908.91 million	$6.08	45.60

Veeva Systems has higher revenue and earnings than Weave Communications. Weave Communications 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 Weave Communications on 11 of the 14 factors compared between the two stocks.

About Weave Communications

Weave Communications, Inc. provides a customer experience and payments software platform in the United States and Canada. Its platform enables small and medium-sized healthcare businesses to maximize the value of their patient interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Unified Phone Number; Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current patients, provide information at every call, and manages heavy call times; Softphones to make and receive calls from anywhere with an internet connection; Text Messaging to communicate with patients; Missed Call Text to take action in real time upon notification of a missed call; Missed Text Auto-Reply; Team Chat, a group messaging solution that helps practitioners and their staff communicate with each other from their work stations; and Weave Mobile App; It also offers Weave Reviews and Respond Assistant to request, collect, monitor, and respond to reviews; Weave Email Marketing and Email Assistant; Text Connect to interact with their existing and potential patients online directly through their websites; Weave Payments, a payment processing solution; Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation; and Call Intelligence. In addition, the company provides Digital Forms to collect patient information; Insurance Verification that provides patient insurance plan details; and Scheduling to send automatic scheduling reminders through text message. It serves customers in dental, optometry, veterinary, medical, plastic surgery, physical therapy, medical spa, and other medical specialty industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.

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.