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

Analyst Recommendations

This is a summary of current recommendations and price targets for Workiva and ServiceNow, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Workiva 0 3 3 0 2.50
ServiceNow 0 5 28 2 2.91

Workiva presently has a consensus price target of $21.33, indicating a potential downside of 2.81%. ServiceNow has a consensus price target of $127.14, indicating a potential upside of 1.67%. Given ServiceNow’s stronger consensus rating and higher probable upside, analysts plainly believe ServiceNow is more favorable than Workiva.

Risk and Volatility

Workiva has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, ServiceNow has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Workiva -18.94% -13,251.94% -25.70%
ServiceNow -8.68% -23.64% -4.30%

Valuation and Earnings

This table compares Workiva and ServiceNow’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Workiva $192.38 million 4.77 -$32.38 million ($0.89) -24.66
ServiceNow $1.63 billion 13.10 -$32.17 million ($0.91) -137.42

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

Institutional & Insider Ownership

32.4% of Workiva shares are held by institutional investors. 33.3% of Workiva shares are held by company insiders. Comparatively, 3.3% of ServiceNow shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

ServiceNow beats Workiva on 11 of the 14 factors compared between the two stocks.

Workiva Company Profile

Workiva Inc. provides enterprises with cloud solutions for improving productivity, accountability and insight into business data. The Company created Wdesk, a collaborative work management platform for organizations to collect, link, report and analyze their business data. Wdesk’s word processing, spreadsheet and presentation applications are integrated and built upon a data management engine, offering synchronized data, controlled collaboration, granular permissions and a full audit trail. As of December 31, 2016, it provided its platform to over 2,700 organizations. Wdesk enables coworkers to create, review and publish data-linked documents and reports with control, accuracy and productivity. With Wdesk data linking, changes are automatically updated in all linked instances, including numbers, text, charts and graphics throughout a customer’s spreadsheets, word-processing documents and presentation decks in the Wdesk platform.

ServiceNow Company Profile

ServiceNow, Inc. is provider of enterprise cloud computing solutions that define, structure, manage and automate services for global enterprises. The Company offers a set of cloud-based services that automate workflow within and between departments in an enterprise. It provides workflow solutions, and focuses on service management for customer support, human resources, security operations and other enterprise departments. The platform also enables customers to create, by themselves or with its partners, their own service-oriented business applications throughout the enterprise. The Company delivers its software through the Internet as a service. It markets its services to enterprises in a range of industries, including financial services, consumer products, information technology services, healthcare, government, education and technology. It operates data centers in Australia, Brazil, Canada, Hong Kong, the Netherlands, Singapore, Switzerland, the United Kingdom and the United States.

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