Financial Contrast: Talkspace (NASDAQ:TALK) vs. Veeva Systems (NYSE:VEEV)

Talkspace (NASDAQ:TALK) 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 dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

57.4% of Talkspace shares are held by institutional investors. Comparatively, 88.2% of Veeva Systems shares are held by institutional investors. 23.5% of Talkspace shares are held by company insiders. Comparatively, 10.3% of Veeva Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talkspace	1.41%	2.48%	2.11%
Veeva Systems	27.34%	13.96%	11.38%

Analyst Recommendations

This is a breakdown of current recommendations for Talkspace and Veeva Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talkspace	0	2	3	2	3.00
Veeva Systems	2	8	14	0	2.50

Talkspace currently has a consensus target price of $4.50, indicating a potential upside of 60.71%. Veeva Systems has a consensus target price of $274.1667, indicating a potential downside of 5.79%. Given Talkspace’s stronger consensus rating and higher possible upside, analysts plainly believe Talkspace is more favorable than Veeva Systems.

Earnings & Valuation

This table compares Talkspace and Veeva Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talkspace	$187.59 million	2.50	$1.15 million	$0.02	140.00
Veeva Systems	$2.75 billion	17.31	$714.14 million	$4.72	61.66

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

Volatility & Risk

Talkspace has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Summary

Veeva Systems beats Talkspace on 9 of the 15 factors compared between the two stocks.

About Talkspace

Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan (BH) that provides online therapy to members through BH and EAP offerings; and Talkspace for Business for members to access its platform services on a benefit plan paid by the enterprise. It serves its platform through third-party platforms or marketplace, such as Apple App Store and Google Play App Store. Talkspace, Inc. was founded in 2012 and is headquartered in New York, New York.

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.