Head to Head Contrast: Unisys (NYSE:UIS) vs. ServiceNow (NYSE:NOW)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServiceNow	$10.98 billion	18.27	$1.43 billion	$7.36	131.76
Unisys	$2.01 billion	0.15	-$193.40 million	($1.07)	-3.85

ServiceNow has higher revenue and earnings than Unisys. Unisys 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 breakdown of current ratings for ServiceNow and Unisys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServiceNow	1	2	29	2	2.94
Unisys	0	1	0	0	2.00

ServiceNow presently has a consensus price target of $1,062.50, indicating a potential upside of 9.56%. Unisys has a consensus price target of $6.50, indicating a potential upside of 57.88%. Given Unisys’ higher possible upside, analysts clearly believe Unisys is more favorable than ServiceNow.

Risk and Volatility

ServiceNow has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Unisys has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ServiceNow	13.41%	17.34%	8.38%
Unisys	-3.76%	-11.93%	1.40%

Insider and Institutional Ownership

87.2% of ServiceNow shares are held by institutional investors. Comparatively, 86.9% of Unisys shares are held by institutional investors. 0.4% of ServiceNow shares are held by company insiders. Comparatively, 7.0% of Unisys shares are held by company 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 Unisys on 12 of the 15 factors compared between the two stocks.

About ServiceNow

ServiceNow, Inc. provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools. It also provides asset management, cloud observability, integrated risk management; information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; strategic portfolio management product suite; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT asset management; and security operations that connects with internal and third party. In addition, the company offers integrated risk management product to manage risk and resilience; environmental, social and governance management product; human resources, legal, and workplace service delivery products; customer service management product; and field service management applications. Further, the company provides app engine product; automation engine; platform privacy and security product; and source-to-pay operations. It serves to government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through service 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.

About Unisys

Unisys Corporation, together with its subsidiaries, operates as an information technology solutions company in the United States and internationally. It operates in three segments: Digital Workplace Solutions (DWS); Cloud, Applications & Infrastructure Solutions (CA&I); and Enterprise Computing Solutions. The DWS segment provides advice and execution related to modern workplace solutions, such as communication and collaboration, intelligent workplace services, unified experience management, and modern device management; and traditional workplace solutions, including traditional service desk, device management and field services. The CA&I segment offers cloud management, hybrid infrastructure, modern applications, data and artificial intelligence, and cyber security; and design, implementation, monitoring, automation, and management of dedicated on-premises or hosted infrastructure. The Enterprise Computing Solutions segment provides license and support solutions; specialized services, next-generation computing, and industry solutions; and other solutions that provides various micro-market and business process solutions. The company also offers enterprise software and technology products, including Unisys InteliServe, PowerSuite, Unisys Logistics Optimization, CloudForte, ClearPath Forward, and Unisys Stealth. It serves its products in the travel and transportation, financial services, and healthcare industries. Unisys Corporation was founded in 1873 and is based in Blue Bell, Pennsylvania.