Critical Analysis: Veeva Systems (NYSE:VEEV) and Decision Diagnostics (OTCMKTS:DECN)

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

Volatility and Risk

Veeva Systems has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Decision Diagnostics has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$2.75 billion	17.15	$714.14 million	$4.87	59.02
Decision Diagnostics	N/A	N/A	N/A	N/A	N/A

Veeva Systems has higher revenue and earnings than Decision Diagnostics.

Insider and Institutional Ownership

88.2% of Veeva Systems shares are held by institutional investors. 10.3% of Veeva Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	27.29%	13.72%	11.23%
Decision Diagnostics	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Veeva Systems and Decision Diagnostics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	2	7	16	0	2.56
Decision Diagnostics	0	0	0	0	0.00

Veeva Systems currently has a consensus target price of $307.58, indicating a potential upside of 7.02%. Given Veeva Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe Veeva Systems is more favorable than Decision Diagnostics.

Summary

Veeva Systems beats Decision Diagnostics on 10 of the 10 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 Decision Diagnostics

Decision Diagnostics Corp. develops smart phone based electronic medical record (EMR) technologies. The company offers prescription and non-prescription diagnostics; home testing products for the chronically ill; fulfillment services to direct to patient diabetes programs; and cell phone centric e-health products and technologies development services. It manufactures and distributes GenUltimate! glucose test strips, a Class II medical device for at-home use for the measurement of glucose; PetSure! glucose test strip for the glucose testing of dogs and cats designed to work with the Zoetis AlphaTrak and AlphaTrak II glucometers, a legacy meter; GenUltimate! 4Pets Glucose system, a proprietary glucose measuring system, including GenUltimate! 4Pets test strip and Avantage meter, for the testing of dogs, cats, and horses; and GenUltimate! Sure and GenUltimate! Precis test strips. In addition, it engages in the acquisition and holding of intellectual property including patents and trademarks and specialty manufacturing equipment. Further, the company also provides MD@Hand, an inpatient/outpatient management suite; Practice Probe, a data mining utility used to extract information from the physician's practice management system; and ResidenceWare, a residential management system that facilitates the relay of information from commercial and residential real estate management companies to occupying tenants using networking software systems and applications. Its EMR technologies are used by physicians at the point of care. The company was formerly known as InstaCare Corp. and changed its name to Decision Diagnostics Corp. in November 2011. Decision Diagnostics Corp. was founded in 2000 and is based in Westlake Village, California.