Reviewing SOPHiA GENETICS (NASDAQ:SOPH) and Veeva Systems (NYSE:VEEV)

SOPHiA GENETICS (NASDAQ:SOPH) and Veeva Systems (NYSE:VEEV) are both medical companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

31.6% of SOPHiA GENETICS shares are owned by institutional investors. Comparatively, 88.2% of Veeva Systems shares are owned by institutional investors. 4.9% of SOPHiA GENETICS shares are owned by insiders. Comparatively, 10.3% of Veeva Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SOPHiA GENETICS	-40.99%	-30.69%	-17.39%
Veeva Systems	27.29%	13.72%	11.23%

Earnings and Valuation

This table compares SOPHiA GENETICS and Veeva Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOPHiA GENETICS	$65.17 million	4.36	-$62.49 million	($0.44)	-9.55
Veeva Systems	$2.75 billion	17.64	$714.14 million	$4.87	60.71

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

Risk and Volatility

SOPHiA GENETICS has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for SOPHiA GENETICS and Veeva Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOPHiA GENETICS	1	0	1	0	2.00
Veeva Systems	2	7	17	0	2.58

SOPHiA GENETICS currently has a consensus price target of $8.00, suggesting a potential upside of 90.48%. Veeva Systems has a consensus price target of $307.58, suggesting a potential upside of 4.04%. Given SOPHiA GENETICS’s higher possible upside, equities analysts plainly believe SOPHiA GENETICS is more favorable than Veeva Systems.

Summary

Veeva Systems beats SOPHiA GENETICS on 12 of the 14 factors compared between the two stocks.

About SOPHiA GENETICS

SOPHiA GENETICS SA operates as a cloud-native software technology company in the healthcare space. The company offers SOPHiA DDM platform, a cloud-native software platform for analyzing data and generating insights from multimodal data sets and diagnostic modalities. Its SOPHiA DDM platform and related solutions, applications, products, and services are used by hospitals, laboratories, and biopharmaceutical companies through its own sales force as well as distributors and industry collaborators in Switzerland, France, Italy, rest of Europe, North America, the United States, Latin America, and the Asia-pacific. SOPHiA GENETICS SA was incorporated in 2011 and is headquartered in Rolle, Switzerland.

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.