Contrasting American Well (NYSE:AMWL) and Veeva Systems (NYSE:VEEV)

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

Risk and Volatility

Veeva Systems has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, American Well has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Veeva Systems and American Well, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	2	8	15	0	2.52
American Well	0	6	1	0	2.14

Veeva Systems presently has a consensus price target of $269.80, suggesting a potential downside of 2.68%. American Well has a consensus price target of $9.67, suggesting a potential upside of 13.59%. Given American Well’s higher probable upside, analysts plainly believe American Well is more favorable than Veeva Systems.

Insider and Institutional Ownership

88.2% of Veeva Systems shares are held by institutional investors. Comparatively, 56.0% of American Well shares are held by institutional investors. 10.3% of Veeva Systems shares are held by insiders. Comparatively, 11.8% of American Well shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	27.34%	13.96%	11.38%
American Well	-59.13%	-48.36%	-35.36%

Earnings and Valuation

This table compares Veeva Systems and American Well”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$2.75 billion	16.49	$714.14 million	$4.72	58.73
American Well	$261.68 million	0.51	-$208.14 million	($10.19)	-0.84

Veeva Systems has higher revenue and earnings than American Well. American Well 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 American Well on 11 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 American Well

American Well Corporation, an enterprise platform and software company, delivers digitally enabling hybrid care in the United States and internationally. The company offers Converge, a cloud-based platform that enables health providers, payers, and innovators to provide in-person, virtual and automated care; and delivers virtual primary care, post-discharge follow-up, chronic condition management, virtual nursing, e-sitting, on-demand and scheduled virtual visits, specialty consults, automated care, and behavioral health, as well as specialty care programs, including dermatology, musculoskeletal care, second opinion, and cardiometabolic care to patients and members. It provides Carepoint devices comprising carts, peripherals, tablets, and TVs, which serve as digital access points in clinical settings. In addition, the company offers Amwell Medical Group network services consisting of primary and urgent care, behavioral health therapy, acute psychiatry, lactation counseling, and nutrition services. Further, it provides professional services to facilitate implementation, workflow design, systems integration, and service expansion for its products, as well as patient and provider engagement services. The company sells its products through field sales professionals, channel partners, and value-added resellers. American Well Corporation was incorporated in 2006 and is headquartered in Boston, Massachusetts.