With organizations now leveraging cloud platforms to enhance scalability, support remote workflows and strengthen their business operations, cloud computing has emerged as the de facto internet data storage option. And because worldwide spending on cloud-focused services is growing quickly, we think cloud operators Workday (NASDAQ:WDAY) and Veeva Systems (NYSE:VEEV) are poised to experience exponential growth. But let’s find out which of these stocks is a better buy now.Workday, Inc. (WDAY) and Veeva Systems Inc. (VEEV) are cloud-based applications providers that operate worldwide. While WDAY offers a suite of financial management applications and human capital management applications to the technology, financial services, healthcare and life sciences, and other industries, VEEV provides software, data, and analytics solutions, as well as data management applications to the life sciences industry.
A wave of hyper-digitization across industries has pushed enterprises to assess the needed changes to their business models and to prioritize increased spending on cloud-based platforms to facilitate more agility, resilience, and customer-focus. With the widespread and rising adoption of hybrid work structures, organizations and individuals are becoming more dependent on cloud collaboration platforms such as WDAY and VEEV to improve their flexibility. So, we think these companies are in a unique position to benefit and capitalize on a sizable market opportunity over the long run.
WDAY has gained 78.8% over the past year, while VEEV has returned 51.1% over the same period. In terms of their past three months’ performance, WDAY is the clear winner with 10% gains versus VEEV’s negative returns. But which of these stocks is a better pick now? Let’s find out.