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 30% more annual revenue ($3.20B vs $2.46B). VEEV leads profitability with a 28.4% profit margin vs -2.5%. VEEV appears more attractively valued with a PEG of 0.79. VEEV earns a higher WallStSmart Score of 69/100 (B-).

RCM

Hold

39

out of 100

Grade: F

Growth: 6.0Profit: 3.0Value: 6.3Quality: 5.0

VEEV

Strong Buy

69

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 7.3Quality: 7.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RCMUndervalued (+47.9%)

Margin of Safety

+47.9%

Fair Value

$27.45

Current Price

$14.31

$13.14 discount

UndervaluedFair: $27.45Overvalued
VEEVUndervalued (+40.0%)

Margin of Safety

+40.0%

Fair Value

$295.05

Current Price

$167.35

$127.70 discount

UndervaluedFair: $295.05Overvalued

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: 8.5/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Profit MarginProfitability
28.4%9/10

Keeps 28 of every $100 in revenue as profit

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Operating MarginProfitability
29.4%8/10

Strong operational efficiency at 29.4%

Revenue GrowthGrowth
16.0%8/10

16.0% revenue growth

EPS GrowthGrowth
23.2%8/10

Earnings expanding 23.2% YoY

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
31.5x4/10

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 Debt/Equity, Profit Margin, PEG Ratio. Profitability is solid with margins at 28.4% and operating margin at 29.4%. Revenue growth of 16.0% 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 1.10 — expect wider price swings.

VEEV is growing revenue faster at 16.0% — sustainability is the question.

VEEV generates stronger free cash flow (100M), providing more financial flexibility.

Bottom Line

VEEV scores higher overall (69/100 vs 39/100), backed by strong 28.4% margins and 16.0% revenue growth. RCM offers better value entry with a 47.9% 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) is a premier provider of technology-driven revenue cycle management services that enhance the financial performance of healthcare organizations nationwide. Utilizing cutting-edge analytics and industry insights, R1 RCM delivers holistic solutions that streamline billing processes and boost operational efficiencies for a wide range of clients, including hospitals and outpatient facilities. The company’s innovative methodologies not only optimize revenue capture but also significantly improve patient experiences, solidifying its position as a pivotal player in the dynamic healthcare landscape. With a strategic focus on expanding its service capabilities and market penetration, R1 RCM is well-positioned to meet the surging demand for sophisticated revenue cycle solutions within the healthcare industry.

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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