Veeva Systems (NYSE:VEEV) and DarioHealth (NASDAQ:DRIO) Critical Analysis
by Michael Walen · The Markets DailyVeeva Systems (NYSE:VEEV – Get Free Report) and DarioHealth (NASDAQ:DRIO – Get Free Report) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Veeva Systems and DarioHealth, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Veeva Systems | 1 | 8 | 19 | 0 | 2.64 |
| DarioHealth | 1 | 1 | 2 | 0 | 2.25 |
Veeva Systems presently has a consensus target price of $284.88, indicating a potential upside of 4.27%. DarioHealth has a consensus target price of $10.00, indicating a potential upside of 54.80%. Given DarioHealth’s higher possible upside, analysts plainly believe DarioHealth is more favorable than Veeva Systems.
Earnings and Valuation
This table compares Veeva Systems and DarioHealth”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Veeva Systems | $3.20 billion | 13.84 | $908.91 million | $6.08 | 44.94 |
| DarioHealth | $22.36 million | 2.83 | -$41.71 million | ($6.13) | -1.05 |
Veeva Systems has higher revenue and earnings than DarioHealth. DarioHealth is trading at a lower price-to-earnings ratio than Veeva Systems, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
88.2% of Veeva Systems shares are held by institutional investors. Comparatively, 33.4% of DarioHealth shares are held by institutional investors. 10.6% of Veeva Systems shares are held by insiders. Comparatively, 3.5% of DarioHealth shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Veeva Systems has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, DarioHealth has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Profitability
This table compares Veeva Systems and DarioHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Veeva Systems | 29.34% | 14.25% | 11.71% |
| DarioHealth | -169.87% | -54.81% | -33.36% |
Summary
Veeva Systems beats DarioHealth on 12 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 DarioHealth
DarioHealth Corp. operates as a digital health company in the United States, Canada, the European Union, Australia, and New Zealand. Its digital therapeutics platform and suite of solutions deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for diabetes, hypertension, weight management, musculoskeletal pain, and behavioral health. The company offers Dario Evolve, a metabolic solution to address metabolic health needs, such as diabetes, pre-diabetes, hypertension, and weight management; Dario Move, which address most common musculoskeletal conditions; Dario Elevate, a behavioral health solution that optimizes access to evidence-based care; and Dario One, a full suite of chronic condition management solution; and Dario blood glucose monitoring systems. It also provides native devices, such as glucose meter, blood pressure cuff, digital scale, and biofeedback sensor device, as well as live coaching services. The company was formerly known as LabStyle Innovations Corp. and changed its name to DarioHealth Corp. in July 2016. DarioHealth Corp. was incorporated in 2011 and is based in New York, New York.