ServiceNow (NYSE:NOW – Get Free Report) and KWESST Micro Systems (NASDAQ:KWE – Get Free Report) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.
Insider and Institutional Ownership
87.2% of ServiceNow shares are held by institutional investors. Comparatively, 21.4% of KWESST Micro Systems shares are held by institutional investors. 0.3% of ServiceNow shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings for ServiceNow and KWESST Micro Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ServiceNow | 1 | 3 | 24 | 2 | 2.90 |
| KWESST Micro Systems | 0 | 0 | 0 | 0 | 0.00 |
Risk and Volatility
ServiceNow has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, KWESST Micro Systems has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.
Valuation and Earnings
This table compares ServiceNow and KWESST Micro Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ServiceNow | $10.46 billion | 23.05 | $1.73 billion | $6.43 | 182.11 |
| KWESST Micro Systems | $1.11 million | 1.49 | -$5.47 million | ($7.80) | -0.07 |
ServiceNow has higher revenue and earnings than KWESST Micro Systems. KWESST Micro Systems is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ServiceNow and KWESST Micro Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ServiceNow | 12.77% | 16.03% | 7.54% |
| KWESST Micro Systems | -494.30% | -428.31% | -135.32% |
Summary
ServiceNow beats KWESST Micro Systems on 14 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 KWESST Micro Systems
KWESST Micro Systems Inc. engages in the development and commercialization of tactical systems and ammunitions for military, public safety agencies, and personal defense markets. It provides non-lethal products, including PARA OPS devices and ARWEN products. The company was incorporated in 2017 and is headquartered in Ottawa, Canada.
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