Critical Analysis: Veeva Systems (VEEV) and Black Knight (BKI)

Veeva Systems (NYSE: VEEV) and Black Knight (NYSE:BKI) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

73.3% of Veeva Systems shares are held by institutional investors. Comparatively, 84.7% of Black Knight shares are held by institutional investors. 16.0% of Veeva Systems shares are held by insiders. Comparatively, 14.4% of Black Knight shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Veeva Systems and Black Knight, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeva Systems 0 3 8 0 2.73
Black Knight 0 2 8 0 2.80

Veeva Systems currently has a consensus target price of $77.67, indicating a potential upside of 0.40%. Black Knight has a consensus target price of $50.75, indicating a potential upside of 0.30%. Given Veeva Systems’ higher probable upside, research analysts clearly believe Veeva Systems is more favorable than Black Knight.

Valuation & Earnings

This table compares Veeva Systems and Black Knight’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veeva Systems $685.57 million 15.95 $141.96 million $0.92 84.09
Black Knight $1.05 billion 7.19 $182.30 million $1.32 38.33

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

Profitability

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

Net Margins Return on Equity Return on Assets
Veeva Systems 20.78% 13.06% 9.78%
Black Knight 19.83% 12.81% 6.00%

Volatility and Risk

Veeva Systems has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, Black Knight has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Summary

Veeva Systems beats Black Knight on 8 of the 13 factors compared between the two stocks.

Veeva Systems Company Profile

Veeva Systems Inc. provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, and internationally. The company offers Veeva Commercial Cloud, a suite of multichannel customer relationship management applications, which allow pharmaceutical and biotechnology companies to target and support sales and marketing to physicians, other healthcare professionals, and healthcare organizations through various touch points, including in-person, email, and online; and Veeva Vault, a cloud-based enterprise content management platform and suite of applications for managing commercial functions, including medical, sales, and marketing, as well as research and development functions, such as clinical, regulatory, and quality. It also provides Veeva Network master data management solutions for the management of customer master and product master data. In addition, the company offers data solutions and services comprising Veeva OpenData, Veeva OpenData data services, Veeva OpenData email, and Veeva key opinion leader data and services, as well as territory allocation and alignment applications. Further, it provides professional and support services in the areas of 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; technical consulting services related to data migration and systems integrations; training on its solutions; and ongoing managed services that include 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 founded in 2007 and is headquartered in Pleasanton, California.

Black Knight Company Profile

Black Knight, Inc. provides software, data, and analytics solutions to the mortgage and consumer loan, real estate, and capital market verticals primarily in the United States. It operates through two segments, Software Solutions, and Data and Analytics. The Software Solutions segment offers software and hosting solutions, including LoanSphere mortgage servicing platform, a software as a service application that automates loan servicing to the secondary mortgage market and investor reporting; and LoanSphere Bankruptcy and LoanSphere Foreclosure solutions, which are Web-based workflow information systems for managing and automating a range of workflow processes involving non-performing loans. It also provides LoanSphere Invoicing to organize images of paper documents within a particular file, capture information from imaged documents, manage invoices, and offer various users access to data needed for monitoring and process management. In addition, this segment provides LoanSphere Empower, which supports retail and wholesale loan originations; LoanSphere LendingSpace that supports correspondent loan originations; LoanSphere Exchange, a platform, which offers interconnected network of originators, agents, settlement services providers, and investors; Insight suite of solutions designed to help lenders meet loan quality and disclosure requirements; and eLending platform, which hosts a range of on-demand services that provide electronic document delivery, signature, closings, and post-close services accessible to lenders. The Data and Analytics segment offers services consisting of property, mortgage performance data, and multiple listing service; mortgage and real estate analytics; and enterprise business intelligence. The company was formerly known as Black Knight Financial Services, Inc. and changed its name to Black Knight, Inc. in October 2017. Black Knight, Inc. was founded in 2013 and is headquartered in Jacksonville, Florida.

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