Because the resurgence of COVID-19 cases due to the spread of its Delta variant is causing delays in organizations’ office-reopening plans, cloud-based software companies are expected to continue witnessing high demand for their products and services, at least in the near term. Hence, we think both Veeva (VEEV) and AppFolio (NASDAQ:APPF) should benefit. But which of these stocks is a better buy now? Let’s find out.Veeva Systems Inc. (NYSE:VEEV) and AppFolio, Inc. (APPF) are two budding players in the cloud-based software industry. VEEV, in Pleasanton, Calif., provides cloud-based software solutions for the global life sciences industry. The company offers enterprise applications, multichannel platforms, customer relationships, and content management solutions. Goleta, Calif.-based APPF provides industry-specific cloud-based business software solutions, services, and data analytics for small- and medium-sized businesses (SMBs) in the property management and legal industries.
Increasing adoption of secure cloud-based software solutions across several industries to provide efficient services to their customers and facilitate the continuation of remote working amid the resurgence of COVID-19 cases should drive the cloud-based software industry’s growth. The global cloud computing market is expected to grow at a 19.1% CAGR to $1.25 trillion by 2028. So, both SNOW and VEEV should benefit.
While APPF has declined 31.2% in price year-to-date, VEEV has surged 12%. VEEV is a clear winner with 2.4% price gains versus APPF’s negative returns in terms of their past three months’ performance. But which of these stocks is a better pick now? Let’s find out.