Heartflow, Inc. (HTFL) vs Veeva Systems Inc. (VEEV)

Heartflow, Inc. and Veeva Systems Inc. are both Health Information Services companies. Veeva Systems Inc. is the larger, with a market value of $50.7B against $4.4B — 11.4× the size. Heartflow, Inc. has negative trailing earnings, so its P/E is not meaningful; Veeva Systems Inc. trades at 50.0×. Heartflow, Inc. grew revenue faster over the last twelve months: 42.8% against 16.5%. Veeva Systems Inc. has the higher net margin (29.3% vs −55.8%) and the higher return on invested capital (343.1% vs −42.8%). Across the 16 metrics below, Veeva Systems Inc. leads on 12 and Heartflow, Inc. on 4.

Valuation

Metric HTFL VEEV Health Information Services median
P/E n/m 49.97 39.82
P/S 19.67 14.57 2.24
P/B 14.92 6.78 1.79
Price to free cash flow n/m 30.74 19.04
EV/EBITDA n/m 39.74 11.52
EV/Sales 19.77 12.47 2.64
Earnings yield (3.79%) 2.00% (2.45%)
Free cash flow yield (1.42%) 3.25% 0.00%

Profitability

Metric HTFL VEEV Health Information Services median
Gross margin 80.08% 74.96% 62.87%
Operating margin (37.84%) 29.93% (9.45%)
Net margin (55.82%) 29.34% (15.48%)
Free cash flow margin (27.91%) 47.39% 0.00%
Return on equity 38.49% 14.42% (6.91%)
Return on assets (46.99%) 11.90% (6.28%)
Return on invested capital (42.81%) 343.12% 0.00%

Growth

Metric HTFL VEEV Health Information Services median
Revenue growth (TTM) 42.77% 16.50% 8.78%
EPS growth (last fiscal year) 82.37% 25.93% 57.06%
Revenue growth, 5-year CAGR — 16.88% 11.91%
Net income growth, 5-year CAGR — 19.05% 0.00%

Health

Metric HTFL VEEV Health Information Services median
Debt to equity 0.00 0.00 0.00
Current ratio 5.08 5.46 2.31
Net debt to EBITDA 3.41 (6.83) 0.48

Dividend

Metric HTFL VEEV Health Information Services median
Dividend yield — — —
Payout ratio — — —

Size

Metric HTFL VEEV Health Information Services median
Market cap 4.43b 50.68b 332.37m

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