SQ vs. NOW, SNPS, SHOP, CDNS, CRWD, NTES, PLTR, SNOW, ADSK, and TEAM
Should you be buying Block stock or one of its competitors? The main competitors of Block include ServiceNow (NOW), Synopsys (SNPS), Shopify (SHOP), Cadence Design Systems (CDNS), CrowdStrike (CRWD), NetEase (NTES), Palantir Technologies (PLTR), Snowflake (SNOW), Autodesk (ADSK), and Atlassian (TEAM). These companies are all part of the "prepackaged software" industry.
Block (NYSE:SQ) and ServiceNow (NYSE:NOW) are both large-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk, valuation, community ranking and media sentiment.
70.4% of Block shares are owned by institutional investors. Comparatively, 87.2% of ServiceNow shares are owned by institutional investors. 10.5% of Block shares are owned by insiders. Comparatively, 0.3% of ServiceNow shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
ServiceNow has lower revenue, but higher earnings than Block. ServiceNow is trading at a lower price-to-earnings ratio than Block, indicating that it is currently the more affordable of the two stocks.
In the previous week, ServiceNow had 20 more articles in the media than Block. MarketBeat recorded 33 mentions for ServiceNow and 13 mentions for Block. ServiceNow's average media sentiment score of 0.72 beat Block's score of 0.52 indicating that ServiceNow is being referred to more favorably in the news media.
Block received 101 more outperform votes than ServiceNow when rated by MarketBeat users. However, 74.63% of users gave ServiceNow an outperform vote while only 69.52% of users gave Block an outperform vote.
Block has a beta of 2.54, indicating that its stock price is 154% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
Block currently has a consensus price target of $87.59, suggesting a potential upside of 31.92%. ServiceNow has a consensus price target of $814.48, suggesting a potential upside of 15.83%. Given Block's higher probable upside, equities analysts clearly believe Block is more favorable than ServiceNow.
ServiceNow has a net margin of 20.34% compared to Block's net margin of 2.18%. ServiceNow's return on equity of 13.59% beat Block's return on equity.
Summary
ServiceNow beats Block on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SQ and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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