Contrasting Pulmonx (NASDAQ:LUNG) & Veeva Systems (NYSE:VEEV)

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

Volatility and Risk

Pulmonx has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pulmonx	-60.09%	-92.94%	-39.80%
Veeva Systems	28.37%	13.89%	11.57%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pulmonx and Veeva Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pulmonx	1	2	4	0	2.43
Veeva Systems	1	8	18	0	2.63

Pulmonx currently has a consensus target price of $5.58, indicating a potential upside of 264.92%. Veeva Systems has a consensus target price of $250.96, indicating a potential upside of 45.10%. Given Pulmonx’s higher probable upside, analysts plainly believe Pulmonx is more favorable than Veeva Systems.

Institutional & Insider Ownership

91.0% of Pulmonx shares are owned by institutional investors. Comparatively, 88.2% of Veeva Systems shares are owned by institutional investors. 6.8% of Pulmonx shares are owned by insiders. Comparatively, 10.6% of Veeva Systems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pulmonx	$90.50 million	0.71	-$54.00 million	($1.30)	-1.18
Veeva Systems	$3.20 billion	8.84	$908.91 million	$5.41	31.97

Veeva Systems has higher revenue and earnings than Pulmonx. Pulmonx 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 Pulmonx on 12 of the 14 factors compared between the two stocks.

About Pulmonx

Pulmonx Corporation, a commercial-stage medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. The company offers Zephyr Endobronchial Valve, a solution for the treatment of patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. It also offers StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. The company serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, 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.