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 businesses based on the strength of their profitability, risk, dividends, valuation, media sentiment, analyst recommendations, earnings, institutional ownership and community ranking.
70.4% of Block shares are held by institutional investors. Comparatively, 87.2% of ServiceNow shares are held by institutional investors. 10.5% of Block shares are held by company insiders. Comparatively, 0.3% of ServiceNow shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company 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.
Block currently has a consensus target price of $87.59, suggesting a potential upside of 36.10%. ServiceNow has a consensus target price of $814.48, suggesting a potential upside of 14.85%. Given Block's higher probable upside, analysts clearly believe Block is more favorable than ServiceNow.
Block has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
In the previous week, ServiceNow had 10 more articles in the media than Block. MarketBeat recorded 24 mentions for ServiceNow and 14 mentions for Block. ServiceNow's average media sentiment score of 0.89 beat Block's score of 0.49 indicating that ServiceNow is being referred to more favorably in the news media.
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.
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.
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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