Comparing Salesforce and Veeva Systems in the Cloud Stock Market
Salesforce's Margin Expansion and Earnings Growth
Salesforce saw its adjusted operating margin expand from 18.7% in fiscal 2022 to 30.5% in fiscal 2024. The company's adjusted EPS rose significantly during this period, amid a strategic shift towards profitability over revenue growth. Salesforce's forward-looking strategy includes the expansion of its Einstein AI services to attract more customers.
Veeva's Growth Stabilization and Revenue Prospects
Veeva, on the other hand, faced challenges as its growth slowed in recent years. The company's revenue growth rates dipped, but Veeva expects a rebound with the deployment of AI applications for more efficient data processing. Despite the recent slowdown, analysts anticipate improved growth for Veeva in fiscal 2025.
The Better Buy: Salesforce
Considering various factors, Salesforce is positioned as the better buy compared to Veeva. Its business diversity, stronger earnings growth, and relative affordability make it a more appealing investment option in the cloud stock market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.