Comparing ServiceNow (NYSE:NOW) & Clarivate (NYSE:CLVT)

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

Institutional and Insider Ownership

87.2% of ServiceNow shares are held by institutional investors. Comparatively, 85.7% of Clarivate shares are held by institutional investors. 0.4% of ServiceNow shares are held by insiders. Comparatively, 23.2% of Clarivate shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for ServiceNow and Clarivate, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServiceNow	1	2	30	2	2.94
Clarivate	1	2	0	0	1.67

ServiceNow currently has a consensus price target of $1,068.23, indicating a potential upside of 10.88%. Clarivate has a consensus price target of $5.00, indicating a potential upside of 16.14%. Given Clarivate’s higher possible upside, analysts clearly believe Clarivate is more favorable than ServiceNow.

Earnings and Valuation

This table compares ServiceNow and Clarivate”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServiceNow	$11.47 billion	17.39	$1.43 billion	$7.36	130.90
Clarivate	$2.56 billion	1.15	-$636.70 million	($0.97)	-4.44

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

Risk & Volatility

ServiceNow has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Clarivate has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ServiceNow	13.41%	17.34%	8.38%
Clarivate	-26.32%	8.75%	3.96%

Summary

ServiceNow beats Clarivate 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 Clarivate

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property. The company offers Web of Science and InCites, that analyzes and explores the academic research landscape and manages research information; ProQuest One and Ebook Central that provides comprehensive content collections to institutions in a cost-effective manner; and Alma and Polaris, that manages academic resources and services, connect users, and support research publications. It also provides Patent and Trademark Renewals, that supports paralegal and admin tasks throughout the patent and trademark protection and maintenance process; CompuMark and Derwent, that supports critical decisions around patent and trademark protection, risk, and value creation throughout the innovation and brand lifecycle; IPFolio and Foundation IP that creates a structured environment for the protection and management of global patent and trademark assets. In addition, the company offers Cortellis Competitive Intelligence and Cortellis Drug Discovery Intelligence, that supports the development of new drugs and medical devices from discovery to clinical trials; Cortellis Regulatory Intelligence and OFF-X to monitor drug safety issues and adhere to regulatory protocols; Real World Data and Optimize that inform commercial launch strategy and set pricing for optimal reimbursement. It serves corporations, universities, law firms, government agencies, public libraries, and other professional services organizations. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc was founded in 1864 and is headquartered in London, the United Kingdom.