KWESST Micro Systems (NASDAQ:KWE – Get Free Report) and ServiceNow (NYSE:NOW – Get Free Report) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Profitability
This table compares KWESST Micro Systems and ServiceNow’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KWESST Micro Systems | -494.30% | -428.31% | -135.32% |
| ServiceNow | 12.77% | 16.03% | 7.54% |
Risk & Volatility
KWESST Micro Systems has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KWESST Micro Systems | $1.11 million | 1.56 | -$5.47 million | ($7.80) | -0.07 |
| ServiceNow | $8.97 billion | 25.82 | $1.73 billion | $6.43 | 174.91 |
ServiceNow has higher revenue and earnings than KWESST Micro Systems. KWESST Micro Systems is trading at a lower price-to-earnings ratio than ServiceNow, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
21.4% of KWESST Micro Systems shares are owned by institutional investors. Comparatively, 87.2% of ServiceNow shares are owned by institutional investors. 0.3% 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.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for KWESST Micro Systems and ServiceNow, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KWESST Micro Systems | 0 | 0 | 0 | 0 | 0.00 |
| ServiceNow | 1 | 3 | 24 | 2 | 2.90 |
ServiceNow has a consensus price target of $1,093.34, suggesting a potential downside of 2.78%. Given ServiceNow’s stronger consensus rating and higher possible upside, analysts plainly believe ServiceNow is more favorable than KWESST Micro Systems.
Summary
ServiceNow beats KWESST Micro Systems on 14 of the 15 factors compared between the two stocks.
About KWESST Micro Systems
KWESST Micro Systems Inc. engages in the development and commercialization of tactical systems and ammunitions for military, public safety agencies, and personal defense markets. It provides non-lethal products, including PARA OPS devices and ARWEN products. The company was incorporated in 2017 and is headquartered in Ottawa, Canada.
About ServiceNow
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.
Receive News & Ratings for KWESST Micro Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KWESST Micro Systems and related companies with MarketBeat.com's FREE daily email newsletter.
