ServiceNow (NYSE: NOW) and Mimecast (NASDAQ:MIME) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Institutional & Insider Ownership
97.1% of ServiceNow shares are owned by institutional investors. Comparatively, 66.6% of Mimecast shares are owned by institutional investors. 1.6% of ServiceNow shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
ServiceNow has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Mimecast has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500.
Earnings and Valuation
This table compares ServiceNow and Mimecast’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ServiceNow||$1.93 billion||15.76||-$149.13 million||($1.05)||-164.26|
|Mimecast||$261.90 million||9.28||-$12.38 million||($0.19)||-216.89|
Mimecast has lower revenue, but higher earnings than ServiceNow. Mimecast is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for ServiceNow and Mimecast, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
ServiceNow presently has a consensus target price of $174.44, suggesting a potential upside of 1.14%. Mimecast has a consensus target price of $41.10, suggesting a potential downside of 0.27%. Given ServiceNow’s stronger consensus rating and higher possible upside, analysts plainly believe ServiceNow is more favorable than Mimecast.
This table compares ServiceNow and Mimecast’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
ServiceNow beats Mimecast on 13 of the 15 factors compared between the two stocks.
ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The company offers service management solutions for customer service, human resources, security operations, and other enterprise departments. It operates ServiceNow platform that provides workflow automation, electronic service catalogs and portals, configuration management systems, data benchmarking, performance analytics, encryption, and collaboration and development tools. The company also provides information technology (IT) solutions, such as IT service management product suite for enterprise's employees, customers, and partners; IT operations management that connects a customer's physical and cloud-based IT infrastructure with applications and platforms; and IT business management product suite that enables customers to manage their IT priorities. In addition, it offers customer service management product for customer service cases and requests; human resources service delivery product; and security operations product for security operations management requirements of third-party. Further, the company provides professional services, training services and certification programs, and customer support services. It serves enterprises in various industries, including financial services, consumer products, IT services, healthcare, government, education, and technology. The company sells products through its direct sales team, as well as indirectly through third-party channels by partnering with systems integrators, managed services 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.
Mimecast Limited, a email and data security company, provides cloud security and risk management services for corporate information and email. The company offers Mimecast Email Security services, including targeted threat protection services, such as URL Protect that addresses the threat from emails containing malicious links; Attachment Protect that reduces threat from weaponized or malware-laden attachments used in spear-phishing and other attacks; Impersonation Protect that gives protection from malware-less social engineering attacks; and Internal Email Protect, which allows customers to monitor, detect, and remediate security threats that originate from within their internal email systems. Its Mimecast Email Security services also comprise Secure Messaging for sharing sensitive information with external contacts through email; Large File Send that enables employees to create security and compliance risks when they turn to file sharing services; and Data Leak Prevention, which prevents the inadvertent or malicious loss of sensitive corporate data with advanced data leak prevention and content controls. In addition, the company offers Mimecast Mailbox Continuity, which protects email and data against the threat of downtime as a result of system failure, natural disasters, planned maintenance, system upgrades, and migrations; and Mimecast Enterprise Information Archiving that offers cloud archive consolidation of inbound, outbound and internal email, files, and instant messaging in an archive, as well as incorporates legacy data from additional archives into the same searchable store. Further, it provides Service Bundles, a unified service managed from a single administration console; and Mimecast Mobile and Desktop Apps for mobile, PC, and Mac users to get self-service access to security features. The company sells its services through direct sales and channel partners. Mimecast Limited was founded in 2003 and is headquartered in London, the United Kingdom.
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