ServiceNow (NYSE:NOW – Get Rating) and Certara (NASDAQ:CERT – Get Rating) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for ServiceNow and Certara, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Rating | Rating Score | |
| Service Today | 2 | 1 | 27 | 0 | 2.83 |
| Certara | 0 | 1 | 5 | 0 | 2.83 |
ServiceNow currently has a consensus target price of $621.80, suggesting a potential upside of 39.18%. Certara has a consensus target price of $29.67, suggesting a potential upside of 36.27%. Given ServiceNow’s higher possible upside, equities research analysts plainly believe ServiceNow is more favorable than Certara.
Valuation and Earnings
This table compares ServiceNow and Certara’s top-line revenue, earnings per share (EPS) and valuation.
| Total Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Service Today | $5.90 billion | 15.19 | $230.00 million | $1.10 | 406.15 |
| Certara | $286.10 million | 12.16 | -$13.27 million | ($0.08) | -272.13 |
ServiceNow has higher revenue and earnings than Certara. Certara is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
Earning ability
This table compares ServiceNow and Certara’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Service Today | 3.56% | 8.66% | 3.10% |
| Certara | -4.02% | 3.56% | 2.43% |
Risk and Volatility
ServiceNow has a beta of 1.03, meaning its share price is 3% more volatile than the S&P 500. Comparatively, Certara has a beta of 1.03, meaning its share price is 3 % more volatile than the S&P 500.
Institutional and Insider Ownership
87.2% of ServiceNow shares are held by institutional investors. Comparatively, 52.1% of Certara shares are held by institutional investors. 0.3% of ServiceNow shares are held by insiders. Comparatively, 4.0% of Certara shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe the company will outperform the market over the long term.
Summary
ServiceNow beats Certara in 11 of the 12 factors compared between the two stocks.
About ServiceNow
(Get Rating)
ServiceNow, Inc. provides of enterprise cloud computing solutions that define, build, integrate, manage, and automate services for businesses worldwide. It powers the Now platform for workflow automation, artificial intelligence, machine learning, robotic process automation, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools. The company also provides information technology (IT) service management applications; IT service management product suite for employees, customers, and enterprise partners; IT business management product suite; IT operations management product that connects the customer’s physical and cloud-based IT infrastructure; IT Asset Management to automate IT asset lifecycles; and security operations connecting internal and third parties. In addition, it offers a governance, risk, and compliance product to manage risk and resilience; human resources, legal, and workplace service delivery products; secure workplace applications; customer service management product; and field service management applications. Additionally, it provides an App Engine product; IntegrationHub enables application to extend workflows; and professional, industry solutions, and customer support services. It provides government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through direct sales teams and resale partners. It has a strategic partnership with Celonis to help customers identify and prioritize processes suitable for automation. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. The company was founded in 2004 and is headquartered in Santa Clara, California.
About Certara
(Get Rating)
Certara, Inc. provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access. It offers medicines to patients using biosimulation software, technology, and services to revolutionize drug discovery and development. The company also provides related technology-enabled services to guide its customers’ new drugs through the regulatory submission process and to market. Technology-enabled services include mechanistic biosimulation, empirical biosimulation, drug development and regulatory strategy, clinical pharmacology, model-based meta-analysis, regulatory writing and medical communication, regulatory operations, and access in the market. In addition, the company offers software, consisting of a mechanistic biosimulation platform, empirical PK/PD biosimulation platform, data standardization and compliance software, scientific informatics platform, clinical outcomes database for biosimulation, authoring and management of regulatory submissions platform, and market access communication platform. The company serves biopharmaceutical companies, and academic and government institutions. It has operations in the United States, Canada, Spain, Luxembourg, Portugal, United Kingdom, Germany, France, Netherlands, Denmark, Switzerland, Italy, Poland, Japan, Philippines, India, Australia, and China. Certara Inc. was founded in 2008 and is headquartered in Princeton, New Jersey.
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