Financial Comparison: Datasea (NASDAQ:DTSS) vs. Veeva Systems (NYSE:VEEV)

Veeva Systems (NYSE:VEEV) and Datasea (NASDAQ:DTSS) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Volatility & Risk

Veeva Systems has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Datasea has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Insider and Institutional Ownership

88.2% of Veeva Systems shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 10.5% of Veeva Systems shares are owned by insiders. Comparatively, 41.1% of Datasea shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veeva Systems	22.34%	12.74%	10.20%
Datasea	-49.62%	-1,115.69%	-249.11%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Veeva Systems and Datasea, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veeva Systems	1	6	15	0	2.64
Datasea	0	0	0	0	N/A

Veeva Systems currently has a consensus target price of $228.27, indicating a potential upside of 23.11%. Given Veeva Systems’ higher possible upside, equities analysts clearly believe Veeva Systems is more favorable than Datasea.

Earnings & Valuation

This table compares Veeva Systems and Datasea’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veeva Systems	$2.36 billion	12.68	$525.71 million	$3.39	54.70
Datasea	$26.44 million	0.29	-$9.48 million	($5.57)	-0.38

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

Summary

Veeva Systems beats Datasea on 12 of the 13 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 Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.