ServiceNow (NYSE:NOW – Get Free Report) and Silvaco Group (NASDAQ:SVCO – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Profitability
This table compares ServiceNow and Silvaco Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ServiceNow | 9.36% | 15.17% | 6.70% |
| Silvaco Group | -30.45% | -13.28% | -8.94% |
Volatility and Risk
ServiceNow has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Silvaco Group has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Valuation & Earnings
This table compares ServiceNow and Silvaco Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ServiceNow | $13.28 billion | 7.87 | $1.75 billion | $1.39 | 72.41 |
| Silvaco Group | $63.06 million | 4.04 | -$41.21 million | ($0.68) | -10.96 |
ServiceNow has higher revenue and earnings than Silvaco Group. Silvaco Group is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for ServiceNow and Silvaco Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ServiceNow | 3 | 3 | 36 | 1 | 2.81 |
| Silvaco Group | 1 | 0 | 4 | 0 | 2.60 |
ServiceNow presently has a consensus target price of $154.50, suggesting a potential upside of 53.50%. Silvaco Group has a consensus target price of $13.75, suggesting a potential upside of 84.56%. Given Silvaco Group’s higher possible upside, analysts plainly believe Silvaco Group is more favorable than ServiceNow.
Insider and Institutional Ownership
87.2% of ServiceNow shares are held by institutional investors. 0.3% of ServiceNow shares are held by insiders. Comparatively, 47.9% of Silvaco Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
ServiceNow beats Silvaco Group on 13 of the 15 factors compared between the two stocks.
About ServiceNow
ServiceNow, Inc. provides cloud-based software that helps organizations manage digital workflows and automate business processes. Founded in 2004 by Fred Luddy, the company began with a focus on IT service management and has expanded its platform to support a range of enterprise operations. Its products include tools for IT service and operations management, customer service, human resources, security, and application development. ServiceNow also offers artificial intelligence capabilities, including tools designed to help organizations automate tasks and find information across workflows.
About Silvaco Group
Silvaco Group develops software and intellectual property used in the design and development of semiconductor devices and integrated circuits. Its products serve semiconductor companies and other organizations involved in electronics design and manufacturing. The company’s offerings include technology computer-aided design (TCAD) tools, which simulate semiconductor processes and device behavior, and electronic design automation (EDA) software for designing and verifying integrated circuits. Silvaco also provides semiconductor IP, including memory and interface solutions, and offers cloud-based access to some of its tools.
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