Contrasting SINA (SINA) & ServiceNow (NOW)

SINA (NASDAQ:SINA) and ServiceNow (NYSE:NOW) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares SINA and ServiceNow’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SINA $1.58 billion 2.79 $156.56 million $2.09 29.58
ServiceNow $1.93 billion 16.35 -$149.13 million ($1.05) -169.13

SINA has higher earnings, but lower revenue than ServiceNow. ServiceNow is trading at a lower price-to-earnings ratio than SINA, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

67.0% of SINA shares are owned by institutional investors. Comparatively, 95.3% of ServiceNow shares are owned by institutional investors. 7.4% of SINA shares are owned by insiders. Comparatively, 1.6% of ServiceNow shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SINA and ServiceNow, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SINA 0 0 4 0 3.00
ServiceNow 0 3 25 1 2.93

SINA currently has a consensus target price of $129.50, suggesting a potential upside of 109.48%. ServiceNow has a consensus target price of $203.44, suggesting a potential upside of 14.56%. Given SINA’s stronger consensus rating and higher probable upside, equities analysts clearly believe SINA is more favorable than ServiceNow.

Volatility & Risk

SINA has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, ServiceNow has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares SINA and ServiceNow’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SINA 8.23% 4.39% 2.82%
ServiceNow -2.52% -3.15% -0.70%

Summary

SINA beats ServiceNow on 9 of the 15 factors compared between the two stocks.

About SINA

SINA Corporation, through its subsidiaries, operates as an online media company in the People's Republic of China. It operates SINA.com, an online brand advertising portal that provides region-focused format and content, including multimedia news; business news coverage and personal finance columns; sporting events news; automobile-related news; entertainment news and events; technology updates; interactive video products, such as news, sports, and entertainment; and education, digital, fashion, luxury, health, collectibles, travel, and other interest-based channels. The company also offers SINA mobile, a mobile portal, which provides news information and entertainment content from SINA.com for mobile users in mobile browser and application format. In addition, it operates Weibo.com that offers discovery products to help users discover content; self-expression products to enable users to express themselves on Weibo platform; social products to promote social interaction between users on Weibo platform; advertising and marketing solutions; and tools and services. Further, the company offers online payment, online loan facilitation, games, VIP membership, and data licensing services. Additionally, it provides mobile value added services, which allow users to receive news and information, download ring tones, mobile games and pictures, customize caller ring back tones, and participate in dating and friendship communities. SINA Corporation was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

About ServiceNow

ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The company offers service management solutions for customer service, human resources, security operations, and other enterprise departments. It operates ServiceNow platform that provides workflow automation, electronic service catalogs and portals, configuration management systems, data benchmarking, performance analytics, encryption, and collaboration and development tools. The company also provides information technology (IT) solutions, such as IT service management product suite for enterprise's employees, customers, and partners; IT operations management that connects a customer's physical and cloud-based IT infrastructure with applications and platforms; and IT business management product suite that enables customers to manage their IT priorities. In addition, it offers customer service management product for customer service cases and requests; human resources service delivery product; and security operations product for security operations management requirements of third-party. Further, the company provides professional services, training services and certification programs, and customer support services. It serves enterprises in various industries, including financial services, consumer products, IT services, healthcare, government, education, and technology. The company sells products through its direct sales team, as well as indirectly through third-party channels by partnering with systems integrators, managed services providers, and resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

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