ServiceNow (NYSE:NOW) and BlackBerry (NYSE:BB) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Institutional and Insider Ownership
97.3% of ServiceNow shares are owned by institutional investors. Comparatively, 52.7% of BlackBerry shares are owned by institutional investors. 1.6% of ServiceNow shares are owned by insiders. Comparatively, 22.7% of BlackBerry shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares ServiceNow and BlackBerry’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares ServiceNow and BlackBerry’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ServiceNow||$2.61 billion||16.43||-$26.70 million||$0.20||1,187.00|
|BlackBerry||$904.00 million||5.58||$93.00 million||$0.13||70.85|
BlackBerry has lower revenue, but higher earnings than ServiceNow. BlackBerry is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for ServiceNow and BlackBerry, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ServiceNow presently has a consensus price target of $234.89, indicating a potential downside of 1.06%. BlackBerry has a consensus price target of $10.94, indicating a potential upside of 18.76%. Given BlackBerry’s higher probable upside, analysts plainly believe BlackBerry is more favorable than ServiceNow.
Volatility and Risk
ServiceNow has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, BlackBerry has a beta of 2.08, meaning that its stock price is 108% more volatile than the S&P 500.
ServiceNow beats BlackBerry on 9 of the 15 factors compared between the two stocks.
ServiceNow Company Profile
ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The company offers information technology (IT) service management applications, as well as digital workflow products for customer service, human resources, security operations, integrated risk management, and other enterprise departments. It operates the Now platform that offers workflow automation, electronic service catalogs and portals, configuration management systems, data benchmarking, performance analytics, encryption, and collaboration and development tools. The company also provides IT service management product suite for enterprise's employees, customers, and partners; IT operations management product that connects a customer's physical and cloud-based IT infrastructure with applications and platforms; IT Asset Management product to automate IT asset lifecycles with workflows; IT business management product suite to manage IT priorities; and enterprise development operations product for developers' toolchain. In addition, it offers customer service management product for customer service cases and requests; human resources service delivery product; security operations product for security operations management requirements of third-party; governance, risk, and compliance product to create policies and controls; and field service management application. Further, the company provides professional services, training services and certification programs, and customer support services. It serves enterprises in industries, such as financial services, consumer products, IT services, healthcare, government, education, and technology. The company sells its products through its direct sales team, as well as through 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.
BlackBerry Company Profile
BlackBerry Limited provides enterprise software and services worldwide. The company offers BlackBerry Enterprise Mobility Suite, which combines and integrates mobile security, management, productivity, and collaboration solutions, such as BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces; BlackBerry AtHoc, a networked crisis communications solution; SecuSUITE for Government, a voice encryption software solution; BlackBerry Enterprise Consulting and BlackBerry Cybersecurity Consulting services; and BBM Enterprise, an enterprise-grade instant messaging solution, as well as BlackBerry Spark Communication services. It also provides CylancePROTECT, an endpoint threat prevention solution; CylanceOPTICS, an endpoint detection and response solution; BlackBerry QNX real-time operating systems, middleware, development tools, and professional services; BlackBerry Jarvis, a cloud-based binary static application security testing platform; and BlackBerry Certicom that offers device security, anti-counterfeiting, and product authentication. In addition, the company offers Paratek, which provides adaptive radio frequency antenna tuning technology; and BlackBerry Radar, an asset tracking and telematics solution, as well as intellectual property and licensing, mobility licensing, and other licensing programs. Further, it is involved in developing BlackBerry 10 platform, and delivering BlackBerry productivity applications to Android smartphone; developing and licensing of device software and outsourcing to partners; and providing of Android smartphones, smartphone accessories, and non-warranty repair services. Additionally, the company engages in the operations related to subscribers using mobile devices with its legacy BlackBerry 7 and prior operating systems. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was founded in 1984 and is headquartered in Waterloo, Canada.
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