r/valueinvesting
Why buy Now when you have Veeva
Author argues VEEV is a better investment than NOW due to deeper moats, cheaper valuation, and more logical acquisitions.
- Veeva has a deeper moat with higher customer switching costs compared to ServiceNow.
- Veeva is much cheaper in valuation offering better value.
- Veeva's recent acquisitions are highly logical, seamlessly integrated, and instantly accretive to revenue.
- ServiceNow's recent acquisitions appear unfocused and lack strategic coherence.
Veeva is much more niche, hence it isn't as big of a household name as ServiceNow.
owever, for every reason someone might invest in ServiceNow, I find Veeva makes a better case.
Think ServiceNow has a deep moat because it's hard for customers to switch? Veeva's moat is even deeper in this front.
Veeva might grow slower, but it is also much cheaper.
The most important things is, ServiceNow's recent acquisitions feel like they are just throwing dirt on wall and try to see what's stick, where as Veeva's recent acquisitions like Copli, Yonalink and Ostro all make perfect sense, can be integrated seamlessly, and will grow revenue instantly.