Financial Survey: Unisys (NYSE:UIS) versus ServiceNow (NYSE:NOW)

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

Institutional and Insider Ownership

86.9% of Unisys shares are owned by institutional investors. Comparatively, 87.2% of ServiceNow shares are owned by institutional investors. 2.7% of Unisys shares are owned by company insiders. Comparatively, 0.4% of ServiceNow shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Analyst Ratings

This is a summary of recent ratings and price targets for Unisys and ServiceNow, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unisys	0	1	0	0	2.00
ServiceNow	1	2	30	2	2.94

Unisys presently has a consensus target price of $6.50, suggesting a potential upside of 40.78%. ServiceNow has a consensus target price of $1,065.32, suggesting a potential upside of 5.90%. Given Unisys’ higher possible upside, analysts clearly believe Unisys is more favorable than ServiceNow.

Earnings and Valuation

This table compares Unisys and ServiceNow”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unisys	$2.01 billion	0.16	-$193.40 million	($1.07)	-4.31
ServiceNow	$11.47 billion	18.15	$1.43 billion	$7.36	136.68

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.

Risk and Volatility

Unisys has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Summary

ServiceNow beats Unisys on 12 of the 15 factors compared between the two stocks.

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.

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.