Comparing iRhythm Technologies (NASDAQ:IRTC) & Veeva Systems (NYSE:VEEV)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for iRhythm Technologies and Veeva Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
iRhythm Technologies	0	1	10	1	3.00
Veeva Systems	2	8	14	0	2.50

iRhythm Technologies currently has a consensus price target of $162.6364, suggesting a potential downside of 3.83%. Veeva Systems has a consensus price target of $274.1667, suggesting a potential downside of 5.79%. Given iRhythm Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe iRhythm Technologies is more favorable than Veeva Systems.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
iRhythm Technologies	-14.06%	-90.03%	-8.52%
Veeva Systems	27.34%	13.96%	11.38%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
iRhythm Technologies	$591.84 million	9.18	-$113.29 million	($2.93)	-57.72
Veeva Systems	$2.75 billion	17.31	$714.14 million	$4.72	61.66

Veeva Systems has higher revenue and earnings than iRhythm Technologies. iRhythm Technologies 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 & Insider Ownership

88.2% of Veeva Systems shares are owned by institutional investors. 1.1% of iRhythm Technologies shares are owned by insiders. Comparatively, 10.3% of Veeva Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

iRhythm Technologies has a beta of 1.41, indicating that its share price is 41% more 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.

Summary

Veeva Systems beats iRhythm Technologies on 11 of the 15 factors compared between the two stocks.

About iRhythm Technologies

iRhythm Technologies, Inc., a digital healthcare company, engages in the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services to diagnose arrhythmias in the United States. It offers Zio services, an ambulatory monitoring solution, including long-term and short-term continuous monitoring and mobile cardiac telemetry monitoring services. The company also provides the Zio Monitor System, a prescription-only, remote electrocardiogram (ECG) monitoring system that consists of a patch ECG monitor that records the electric signal from the heart continuously for up to 14 days and the Zio ECG Utilization Software System, which supports the capture and analysis of ECG data recorded by the Zio Monitor patch at the end of the wear period, including specific arrhythmia events detected by the ZEUS System; the Zio XT System is the previous generation of the Zio Monitor System and is a prescription-only, remote ECG monitoring system that consists of the Zio XT patch that records the electric signal from the heart continuously for up to 14 days; and the Zio AT system, a prescription-only, remote ECG monitoring system that similarly consists of the Zio AT patch that records the electric signal from the heart continuously for up to 14 days and the ZEUS System, but which also incorporates the Zio AT wireless gateway that provides connectivity between the Zio AT patch and the ZEUS System during the patient wear period. It has a development collaboration agreement with Verily Life Sciences LLC and Verity Ireland Limited to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, 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.