ServiceNow (NYSE:NOW) vs. FalconStor Software (OTCMKTS:FALC) Head to Head Survey

ServiceNow (NYSE:NOW – Get Rating) and FalconStor Software (OTCMKTS:FALC – Get Rating) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for ServiceNow and FalconStor Software, as reported by MarketBeat.

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ServiceNow presently has a consensus target price of $536.94, indicating a potential downside of 5.35%. Given ServiceNow’s higher possible upside, equities analysts clearly believe ServiceNow is more favorable than FalconStor Software.

Insider and Institutional Ownership

86.3% of ServiceNow shares are owned by institutional investors. Comparatively, 2.5% of FalconStor Software shares are owned by institutional investors. 0.3% of ServiceNow shares are owned by company insiders. Comparatively, 52.8% of FalconStor Software shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

ServiceNow has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, FalconStor Software has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Valuation and Earnings

This table compares ServiceNow and FalconStor Software’s gross revenue, earnings per share (EPS) and valuation.

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

Profitability

This table compares ServiceNow and FalconStor Software’s net margins, return on equity and return on assets.

Summary

ServiceNow beats FalconStor Software on 11 of the 13 factors compared between the two stocks.

About ServiceNow

(Get Rating)

ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. The company operates the Now platform for workflow automation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools. It also provides 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; safe workplace suite products; customer service management product; and field service management applications. Further, it provides App Engine product; Automation Engine enables application to extend workflows; platform privacy and security product; procurement operations management suite; and professional and customer support services. The company serves government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through direct sales team and resale partners. It has a strategic partnership with Celonis to help customers identify and prioritize processes that are 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 FalconStor Software

(Get Rating)

FalconStor Software, Inc., a storage software company, enables enterprise customers and managed service providers to secure, migrate, and protect their data worldwide. It offers FalconStor Virtual Tape Library, a software that emulates and replaces cumbersome physical tape libraries for archive related data preservation without being replacing their enterprise backup and archive software and associated processes; FalconStor StorSafe, a long-term archive data management software; FalconStor Continuous Data Protector delivers instant data availability, and reliable recovery; and FalconStor Network Storage Server for data storage virtualization and business continuity in heterogeneous environments. The company also provides FalconStor StorSigh, a long-term archive and business continuity driven data replication from one centralized management point; FalconStor RecoverTrac Disaster Recovery Technology that streamlines the implementation, testing, and execution of disaster recovery operations; and FalconStor MicroScanTM Technology, which minimizes the amount of data transferred during replication by eliminating inefficiencies at the application and file system layer. It sells its products through authorized partners, value-added resellers, solution providers, system integrators, direct market resellers, distributors, managed service providers, cloud service providers, and original equipment manufacturers, as well as directly to customers. The company was incorporated in 1994 and is headquartered in Austin, Texas.

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