Veeva Systems vs. HMS Holdings: Which Cloud-Powered MedTech Stock is a Better Buy? One of the technologies that came the forefront during the pandemic was the cloud. Cloud computing was already gaining traction before COVID hit, but...
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One of the technologies that came the forefront during the pandemic was the cloud. Cloud computing was already gaining traction before COVID hit, but is now becoming a bigger part of our lives. For instance, the cloud is starting to play a major role in the healthcare sector, and Veeva Systems (VEEV) and HMS Holdings (HMSY) are two such examples. But which is the better buy? Read more to find out.
Investors are looking for future-proof stocks that will rake in cash no matter how society or geopolitics change in the years and decades ahead. Cloud-powered medical tech stocks appear to be some of the few that are legitimately future-proof. If you haven't taken a close look at this space, now is the time to do so.
Even if you don't understand how the cloud works or if you haven't read about medical industry breakthroughs in recent years, you still have the opportunity to make money from these innovations. Carefully select a couple of cloud-powered medical technology stocks for your portfolio and be patient.
Veeva Systems (VEEV) and HMS Holdings (HMSY) are two such stocks worthy of your analysis. Let's take a look at each of these stocks.
Veeva Systems (VEEV)
VEEV provides software applications along with data solutions through the cloud. These solutions are provided for businesses in the life sciences industry. The company's customer relationship management software is its flagship product, operating on Salesforce.com's (CRM) platform. The two powerhouses will continue their relationship until 2025.
VEEV's value offering is centered on providing life sciences organizations with the cloud solutions they need to thrive. Though this is a heavily regulated space, VEEV's cloud-based platform sets the stage for smoother and more efficient clinical trial management, regulatory compliance, and overarching efficiency.
The stock is trading about $30 below its 52-week high of $343.96. VEEV's 52-week low is $235.74. VEEV's beta is 0.73, which indicates it is less volatile than the market. VEEV has an overall grade of B, translating into a Buy rating in our POWR Ratings system. VEEV has B grades in the Quality and Growth components. Click here to find out how the company grades in the rest of the components, including Value, Momentum, Stability, and Sentiment.
Out of 82 publicly traded companies in the Medical - Services industry, VEEV is ranked 20th. You can find other top stocks in this industry by clicking here. Check out the analysts' take on VEEV, and you will find their average price target for the stock has increased $68.05 in the past 89 days. Click here to find out more about what the analysts are saying about VEEV.
Click here to check out our Cloud Computing Industry Report for 2021
HMS Holdings (HMSY)
HMSY coordinates benefits services for governmental agencies, healthcare companies, sponsors, and other organizations. Headquartered in Irving, Texas, HMSY has been in business for nearly half a century.
HMSY has an overall grade of C and a Neutral rating in the POWR Ratings system. The stock has a grade of C in the Value, Quality, and Momentum components. If you would like to find out how HMSY grades in the rest of the components, including Growth, Sentiment, and Stability, you can do so by clicking here.
HMSY is ranked 41st out of 80 stocks in the Medical - Services industry. Analysts don't expect HMSY to move much from its current price. HMSY's average analyst price target is $37. In other words, analysts believe the stock will move sideways. It is particularly interesting to note that each of the seven analysts who cover HMSY rate the stock a Hold.
Which is the Better Buy?
VEEV's it the better buy of these two stocks. The company has an overall Buy rating in the POWR Ratings, is ranked higher in its industry, and has better component grades.
VEEV shares fell $0.54 (-0.17%) in premarket trading Friday. Year-to-date, VEEV has gained 16.11%, versus a 22.06% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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