Could This Healthcare SaaS Stock Be the Next Veeva Systems?
It’s no longer a secret that the software-as-a-service (SaaS) business model has huge advantages. It costs next to nothing to give a new customer access; upgrades are the norm; and wide moats form via both high switching costs and network effects.
It’s no wonder, then, that Veeva Systems (NYSE: VEEV) — a SaaS company that caters primarily to large pharmaceutical players — has seen its stock return more than 1,100% in the past five years. Could there be other healthcare SaaS stocks capable of returning such figures?
Today, we’ll examine Health Catalyst (NASDAQ: HCAT), a SaaS company that aims to partner with hospitals and other healthcare organizations to improve outcomes. As you’ll see below, while Health Catalyst has a lot going for it, Veeva might not be the best comparison. Here’s why.