Comparing BlackBerry (BB) & ServiceNow (NOW)

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

Risk & Volatility

BlackBerry has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BlackBerry $932.00 million 5.19 $405.00 million $0.05 176.60
ServiceNow $2.61 billion 16.72 -$26.70 million $0.20 1,208.50

BlackBerry has higher earnings, but lower revenue 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.

Institutional and Insider Ownership

52.7% of BlackBerry shares are held by institutional investors. Comparatively, 97.2% of ServiceNow shares are held by institutional investors. 22.7% of BlackBerry shares are held by insiders. Comparatively, 1.6% of ServiceNow shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for BlackBerry and ServiceNow, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BlackBerry 1 5 1 0 2.00
ServiceNow 0 4 21 2 2.93

BlackBerry presently has a consensus target price of $10.43, indicating a potential upside of 18.10%. ServiceNow has a consensus target price of $231.74, indicating a potential downside of 4.12%. Given BlackBerry’s higher possible upside, analysts plainly believe BlackBerry is more favorable than ServiceNow.

Profitability

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

Net Margins Return on Equity Return on Assets
BlackBerry 3.63% 0.98% 0.65%
ServiceNow -1.02% 3.95% 1.05%

Summary

ServiceNow beats BlackBerry on 10 of the 15 factors compared between the two stocks.

About BlackBerry

BlackBerry Limited operates as an enterprise software and services company focused on securing and managing endpoints in the Internet of Things. It 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 secure and networked crisis communications solution; SecuSUITE for Government, a voice encryption software solution; BlackBerry Enterprise Consulting and BlackBerry Cybersecurity Consulting; and BBM Enterprise, an enterprise-grade secure instant messaging solution, as well as Communications Platform as a Service. The company also provides BlackBerry QNX, a software for automotive electronics; BlackBerry Jarvis, a cloud-based static binary code-scanning solution; Certicom that offers software components and end-to-end security solutions targeted at bandwidth and resource-constrained applications; Paratek, which offers adaptive radio frequency antenna tuning technology; BlackBerry Radar, an asset tracking and telematics product. In addition, it offers intellectual property and licensing; mobility licensing; other licensing programs; and develops legacy BlackBerry 10 platform, and delivers BlackBerry productivity applications to Android smartphone. Further, the company engages in the development and licensing of secure device software and the outsourcing to partners of design, manufacturing, sales, and customer support for BlackBerry-branded handsets; and provision of Android smartphones, smartphone accessories, and non-warranty repair services. Additionally, it is involved 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.

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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