Head to Head Contrast: Veeva Systems (NYSE:VEEV) & Paycor HCM (NASDAQ:PYCR)

Veeva Systems (NYSE:VEEV) and Paycor HCM (NASDAQ:PYCR) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Profitability

This table compares Veeva Systems and Paycor HCM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	25.07%	13.56%	11.02%
Paycor HCM	-3.06%	4.28%	2.06%

Analyst Ratings

This is a summary of current recommendations and price targets for Veeva Systems and Paycor HCM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	2	8	16	0	2.54
Paycor HCM	1	16	2	0	2.05

Veeva Systems presently has a consensus target price of $255.08, suggesting a potential upside of 12.29%. Paycor HCM has a consensus target price of $21.53, suggesting a potential downside of 3.08%. Given Veeva Systems’ stronger consensus rating and higher probable upside, equities analysts plainly believe Veeva Systems is more favorable than Paycor HCM.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$2.66 billion	13.88	$525.71 million	$4.05	56.09
Paycor HCM	$654.95 million	6.17	-$58.94 million	($0.12)	-185.11

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

Insider & Institutional Ownership

88.2% of Veeva Systems shares are owned by institutional investors. Comparatively, 36.8% of Paycor HCM shares are owned by institutional investors. 10.5% of Veeva Systems shares are owned by company insiders. Comparatively, 1.4% of Paycor HCM shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Veeva Systems has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Paycor HCM has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Summary

Veeva Systems beats Paycor HCM on 14 of the 14 factors compared between the two stocks.

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.

About Paycor HCM

Paycor HCM, Inc., together with its subsidiaries, provides software-as-a-service (SaaS) human capital management (HCM) solutions for small and medium-sized businesses (SMBs) primarily in the United States. It offers cloud-native platform to address the comprehensive people management needs of SMB leaders. The company's SaaS based people management products include Cor HCM, a complete suite of HCM tools spanning HR, onboarding, payroll, compensation management, employee surveys, expenses, and reporting and analytics; Workforce Management, a solution with flexible time entry, overtime calculations, and scheduling capabilities with real-time payroll synchronization; Benefits Administration, a decision support solution to help leaders to streamline and optimize company's benefits administration; and Talent Management, an integrated compensation and performance management solution. It serves manufacturing, healthcare, restaurant, retail, professional services, nonprofit, and education industries through its direct sales teams. Paycor HCM, Inc. was founded in 1990 and is headquartered in Cincinnati, Ohio.