Wix.com (NASDAQ:WIX) & ServiceNow (NYSE:NOW) Critical Review

Wix.com (NASDAQ:WIX) and ServiceNow (NYSE:NOW) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Volatility & Risk

Wix.com has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares Wix.com and ServiceNow”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wix.com	$1.99 billion	1.62	$50.65 million	$0.81	68.30
ServiceNow	$13.28 billion	6.76	$1.75 billion	$1.68	51.85

ServiceNow has higher revenue and earnings than Wix.com. ServiceNow is trading at a lower price-to-earnings ratio than Wix.com, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wix.com and ServiceNow’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wix.com	2.54%	-70.04%	7.27%
ServiceNow	12.59%	18.16%	9.04%

Analyst Ratings

This is a summary of recent ratings and target prices for Wix.com and ServiceNow, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wix.com	2	5	14	1	2.64
ServiceNow	1	6	33	2	2.86

Wix.com currently has a consensus price target of $124.40, indicating a potential upside of 124.87%. ServiceNow has a consensus price target of $144.71, indicating a potential upside of 66.12%. Given Wix.com’s higher possible upside, equities research analysts clearly believe Wix.com is more favorable than ServiceNow.

Insider & Institutional Ownership

81.5% of Wix.com shares are owned by institutional investors. Comparatively, 87.2% of ServiceNow shares are owned by institutional investors. 6.2% of Wix.com shares are owned by insiders. Comparatively, 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 will outperform the market over the long term.

Summary

ServiceNow beats Wix.com on 11 of the 15 factors compared between the two stocks.

About Wix.com

Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers. It also provides Wix Logo Maker that generates a logo, including through the use of artificial intelligence; Wix Answers to support users; and Payments by Wix, a payment platform, which helps its users receive payments from their customers through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including Wix App Market, a marketplace that offers its registered users various free and paid web applications for building, growing, and managing their businesses; Wix marketplace that brings users seeking help in creating and managing a website together with Web experts; and Wix owner App, a native mobile application, which enables users to manage their Websites and Wix operating systems. The company was formerly known as Wixpress Ltd. The company was incorporated in 2006 and is headquartered in Tel Aviv, Israel.

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.