SQ vs. NOW, SNPS, CRWD, CDNS, SHOP, NTES, SNOW, PLTR, ADSK, and TEAM
Should you be buying Block stock or one of its competitors? The main competitors of Block include ServiceNow (NOW), Synopsys (SNPS), CrowdStrike (CRWD), Cadence Design Systems (CDNS), Shopify (SHOP), NetEase (NTES), Snowflake (SNOW), Palantir Technologies (PLTR), 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 better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, media sentiment, risk, analyst recommendations, community ranking, earnings, dividends and profitability.
Block has a beta of 2.57, meaning that its stock price is 157% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
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.
Block currently has a consensus price target of $87.59, suggesting a potential upside of 36.69%. ServiceNow has a consensus price target of $814.48, suggesting a potential upside of 23.98%. Given Block's higher probable upside, equities research analysts plainly believe Block is more favorable than ServiceNow.
In the previous week, ServiceNow had 30 more articles in the media than Block. MarketBeat recorded 42 mentions for ServiceNow and 12 mentions for Block. ServiceNow's average media sentiment score of 0.70 beat Block's score of 0.50 indicating that ServiceNow is being referred to more favorably in the news media.
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.
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 insiders. Comparatively, 0.3% of ServiceNow shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
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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