Reviewing ServiceNow Inc. (NOW)’s and NCR Corporation (NYSE:NCR)’s res…

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ServiceNow Inc. (NYSE:NOW) and NCR Corporation (NYSE:NCR), both competing one another are Information Technology Services companies. We will compare their profitability, analyst recommendations, risk, dividends, institutional ownership, earnings and valuation.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ServiceNow Inc. 2.61B 16.14 26.70M 1.17 158.71
NCR Corporation 6.41B 0.51 85.00M 0.20 125.67

Table 1 highlights ServiceNow Inc. and NCR Corporation’s top-line revenue, earnings per share and valuation. NCR Corporation has lower earnings, but higher revenue than ServiceNow Inc. The company that is more expensive between the two has a higher P/E ratio. ServiceNow Inc. is trading at a higher P/E ratio than NCR Corporation, indicating that it is currently more expensive of the two stocks.

Profitability

Table 2 provides us the return on assets, net margins and return on equity of both businesses.

Net Margins Return on Equity Return on Assets
ServiceNow Inc. -1.02% -6.9% -1.7%
NCR Corporation -1.33% -24.9% -1.8%

Risk & Volatility

ServiceNow Inc. has a beta of 1.28 and its 28.00% more volatile than S&P 500. NCR Corporation’s 77.00% more volatile than S&P 500 volatility due to the stock’s 1.77 beta.

Liquidity

The current Quick Ratio of ServiceNow Inc. is 1.3 while its Current Ratio is 1.3. Meanwhile, NCR Corporation has a Current Ratio of 1.4 while its Quick Ratio is 1. NCR Corporation is better positioned to pay off its short-term and long-term debts than ServiceNow Inc.

Analyst Ratings

The Recommendations and Ratings for ServiceNow Inc. and NCR Corporation are featured in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
ServiceNow Inc. 0 2 7 2.78
NCR Corporation 0 1 2 2.67

ServiceNow Inc. has a -12.91% downside potential and an average target price of $204.56. On the other hand, NCR Corporation’s potential upside is 26.35% and its consensus target price is $35. Based on the analysts belief we can conclude, NCR Corporation is looking more favorable than ServiceNow Inc.

Institutional and Insider Ownership

The shares of both ServiceNow Inc. and NCR Corporation are owned by institutional investors at 96.8% and 97.8% respectively. 0.3% are ServiceNow Inc.’s share held by insiders. Competitively, 0.5% are NCR Corporation’s share held by insiders.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
ServiceNow Inc. -0.2% -3.11% -7.09% 2.68% 52.81% 41.81%
NCR Corporation -8.84% -9.59% -10.55% -20.34% -19.76% -25.68%

For the past year ServiceNow Inc. had bullish trend while NCR Corporation had bearish trend.

Summary

ServiceNow Inc. beats NCR Corporation on 12 of the 15 factors.

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 support, human resources, security operations, and other enterprise departments. It operates ServiceNow platform that provides workflow, configuration management database, service catalog, service portal, knowledge management, reporting and analytics, data benchmarking, visual task boards, built-in and optional encryption capabilities, and collaboration and developer tools. The company also provides information technology (IT) solutions, such as IT service management product suite for enterpriseÂ’s employees, customers, and partners; IT operations management that connects a customerÂ’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; HR service management product; and security operation management 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, 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 with additional offices in North America, South America, Europe, and Asia.

NCR Corporation provides omni-channel technology solutions that enable businesses connect, interact, and transact with their customers worldwide. The companyÂ’s Software segment offers industry-based software applications and application suites for the financial services, retail, hospitality, and small business industries; and fraud and loss prevention, check and document imaging, remote-deposit capture, and customer-facing digital banking applications, as well as cash management and video banking software for the financial services industry. It also provides electronic and mobile payment solutions, sector-specific point of sale (POS) software applications, and back-office inventory, and store and restaurant management applications for the retail and hospitality industries; and software support and maintenance, and consulting and implementation services for its software solutions. Its Services segment provides assessment and preparation, staging, installation, implementation, and maintenance and support; and systems management and managed services for its hardware solutions. It also provides installation, maintenance, and managed services for third party networking products and computer hardware in the telecommunications and technology sectors. The companyÂ’s Hardware segment offers multi-function ATMs, interactive teller machines, thin-client ATMs, cash dispensers, cash recycling ATMs, and hardware for check and image processing; financial services hardware; and POS terminals, self-checkout kiosks, order and payment kiosks, bar code scanners, printers, and peripherals to retailers, restaurants, food service companies, and entertainment and sports venues. This segment also provides self-check in/out kiosk solutions for airlines, hotels, and casinos; and wayfinding solutions, digital signage, bill payment kiosks, and gift registries, as well as resells third party networking products. The company was founded in 1884 and is headquartered in Duluth, Georgia.

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