Comparing Doximity (NYSE:DOCS) & Veeva Systems (NYSE:VEEV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Doximity	25.48%	18.06%	15.40%
Veeva Systems	29.34%	14.25%	11.71%

Insider & Institutional Ownership

87.2% of Doximity shares are held by institutional investors. Comparatively, 88.2% of Veeva Systems shares are held by institutional investors. 31.8% of Doximity shares are held by company insiders. Comparatively, 10.6% of Veeva Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Doximity 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
Doximity	$644.86 million	7.33	$196.05 million	$0.85	31.21
Veeva Systems	$3.20 billion	14.11	$908.91 million	$6.08	45.80

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

Volatility and Risk

Doximity has a beta of 1.25, indicating that its stock price is 25% more 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Doximity and Veeva Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doximity	3	14	7	1	2.24
Veeva Systems	1	8	19	0	2.64

Doximity presently has a consensus target price of $31.95, indicating a potential upside of 20.45%. Veeva Systems has a consensus target price of $284.88, indicating a potential upside of 2.29%. Given Doximity’s higher possible upside, equities analysts clearly believe Doximity is more favorable than Veeva Systems.

Summary

Veeva Systems beats Doximity on 9 of the 15 factors compared between the two stocks.

About Doximity

Doximity, Inc. operates a cloud-based digital platform for medical professionals in the United States. The company’s cloud-based platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical companies and health systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.

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.