10x Genomics (TXG) vs Veeva Systems Inc. (VEEV)

10x Genomics and Veeva Systems Inc. are both Health Information Services companies. Veeva Systems Inc. is the larger, with a market value of $44.5B against $11.1B — 4.0× the size. 10x Genomics has negative trailing earnings, so its P/E is not meaningful; Veeva Systems Inc. trades at 45.2×. Veeva Systems Inc. grew revenue faster over the last twelve months: 16.5% against −4.28%. Veeva Systems Inc. has the higher net margin (29.3% vs −12.2%) and the higher return on invested capital (343.1% vs −20.2%). Across the 19 metrics below, Veeva Systems Inc. leads on 17 and 10x Genomics on 2.

Valuation

Metric TXG VEEV Health Information Services median
P/E n/m 45.20 39.52
P/S 18.06 13.18 2.65
P/B 13.50 6.13 2.32
Price to free cash flow 92.51 27.81 16.77
EV/EBITDA n/m 35.31 12.35
EV/Sales 17.32 11.08 3.06
Earnings yield (0.69%) 2.21% (1.68%)
Free cash flow yield 1.08% 3.60% 0.54%

Profitability

Metric TXG VEEV Health Information Services median
Gross margin 70.03% 74.96% 63.38%
Operating margin (14.33%) 29.93% (8.35%)
Net margin (12.18%) 29.34% (14.70%)
Free cash flow margin 19.68% 47.39% 0.58%
Return on equity (9.40%) 14.42% (6.82%)
Return on assets (7.47%) 11.90% (6.02%)
Return on invested capital (20.20%) 343.12% 0.00%

Growth

Metric TXG VEEV Health Information Services median
Revenue growth (TTM) (4.28%) 16.50% 8.62%
EPS growth (last fiscal year) 76.97% 25.93% —
Revenue growth, 5-year CAGR 16.55% 16.88% 12.36%
Net income growth, 5-year CAGR 0.00% 19.05% 0.00%

Health

Metric TXG VEEV Health Information Services median
Debt to equity 0.00 0.00 0.01
Current ratio 5.69 5.46 2.37
Net debt to EBITDA 30.49 (6.83) 0.50

Dividend

Metric TXG VEEV Health Information Services median
Dividend yield — — 0.85%
Payout ratio 0.00 0.00 0.00

Size

Metric TXG VEEV Health Information Services median
Market cap 11.05b 44.47b 352.86m

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