WallStSmart

R1 RCM Inc (RCM)vsVeeva Systems Inc Class A (VEEV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Veeva Systems Inc Class A generates 35% more annual revenue ($3.32B vs $2.46B). VEEV leads profitability with a 28.4% profit margin vs -2.5%. VEEV appears more attractively valued with a PEG of 0.92. VEEV earns a higher WallStSmart Score of 69/100 (B-).

RCM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 5.7Quality: 6.0
Piotroski: 6/9Altman Z: 1.34

VEEV

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 7.3Quality: 9.0
Piotroski: 4/9Altman Z: 4.78
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RCMUndervalued (+26.6%)

Margin of Safety

+26.6%

Fair Value

$19.49

Current Price

$14.31

$5.18 discount

UndervaluedFair: $19.49Overvalued
VEEVUndervalued (+38.9%)

Margin of Safety

+38.9%

Fair Value

$289.59

Current Price

$230.47

$59.12 discount

UndervaluedFair: $289.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

RCM1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

VEEV6 strengths · Avg: 9.2/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7810/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.4%9/10

Keeps 28 of every $100 in revenue as profit

PEG RatioValuation
0.928/10

Growing faster than its price suggests

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

Areas to Watch

RCM4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Return on EquityProfitability
-2.2%2/10

ROE of -2.2% — below average capital efficiency

EPS GrowthGrowth
-99.3%2/10

Earnings declined 99.3%

VEEV1 concerns · Avg: 4.0/10
P/E RatioValuation
35.7x4/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : RCM

The strongest argument for RCM centers on Price/Book. Revenue growth of 14.7% demonstrates continued momentum.

Bull Case : VEEV

The strongest argument for VEEV centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 28.4% and operating margin at 30.9%. Revenue growth of 16.3% demonstrates continued momentum.

Bear Case : RCM

The primary concerns for RCM are PEG Ratio, Operating Margin, Return on Equity.

Bear Case : VEEV

The primary concerns for VEEV are P/E Ratio.

Key Dynamics to Monitor

RCM profiles as a turnaround stock while VEEV is a growth play — different risk/reward profiles.

VEEV carries more volatility with a beta of 0.94 — expect wider price swings.

VEEV is growing revenue faster at 16.3% — sustainability is the question.

VEEV generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

VEEV scores higher overall (69/100 vs 39/100), backed by strong 28.4% margins and 16.3% revenue growth. RCM offers better value entry with a 26.6% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

R1 RCM Inc

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

R1 RCM Inc (RCM) stands out as a leading provider of technology-driven revenue cycle management solutions, specifically designed to enhance the financial performance of healthcare organizations across the United States. Leveraging cutting-edge analytics and deep industry insights, R1 RCM optimizes billing processes and boosts operational efficiency for hospitals and outpatient facilities. By maximizing revenue capture while improving patient experiences, the company solidifies its position within a rapidly evolving healthcare landscape. With strategic initiatives aimed at expanding its service offerings and increasing market presence, R1 RCM is poised for sustained growth and a competitive edge in the increasingly complex revenue cycle management sector.

Veeva Systems Inc Class A

HEALTHCARE · HEALTH INFORMATION SERVICES · USA

Veeva Systems Inc. provides cloud-based software for the life sciences industry in North America, Europe, Asia Pacific, the Middle East, Africa, and Latin America. The company is headquartered in Pleasanton, California.

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