Analyzing ServiceNow (NYSE:NOW) & InterDigital (NASDAQ:IDCC)

ServiceNow (NYSE:NOW – Get Free Report) and InterDigital (NASDAQ:IDCC – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Institutional and Insider Ownership

87.2% of ServiceNow shares are held by institutional investors. Comparatively, 99.8% of InterDigital shares are held by institutional investors. 0.3% of ServiceNow shares are held by insiders. Comparatively, 3.5% of InterDigital shares are held by 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.

Profitability

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

Earnings and Valuation

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

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

Volatility & Risk

ServiceNow has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, InterDigital has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for ServiceNow and InterDigital, as provided by MarketBeat.

ServiceNow currently has a consensus price target of $155.74, indicating a potential upside of 4.14%. InterDigital has a consensus price target of $450.00, indicating a potential upside of 40.38%. Given InterDigital’s higher possible upside, analysts plainly believe InterDigital is more favorable than ServiceNow.

Summary

InterDigital beats ServiceNow on 8 of the 15 factors compared between the two stocks.

About ServiceNow

(Get Free Report)

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 InterDigital

(Get Free Report)

InterDigital, Inc. operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming. It designs and develops a range of innovations for use in digital cellular and wireless products and networks, including 2G, 3G, 4G, 5G, and IEEE 802-related products and networks. The company also develops cellular technologies, such as technologies related to CDMA, TDMA, OFDM/OFDMA, and MIMO for use in 2G, 3G, 4G, and 5G wireless networks, as well as mobile terminal devices; and 3GPP technology portfolio in 5G, 5G, advanced and 6G, as well as technologies for automobiles, wearables, smart homes, drones, and other connected consumer electronic products. In addition, it provides video coding and transmission technologies; and engages in the research and development of artificial intelligence and machine learning solutions. Further, the company's patented technologies are used in various products that include smartphones, tablets, consumer electronics, and base stations; televisions, laptops, gaming consoles, set-top boxes, streaming devices, and connected automobiles. InterDigital, Inc. was incorporated in 1972 and is headquartered in Wilmington, Delaware.

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