Financial Survey: SecureAlert (OTCMKTS:TRCK) & ServiceNow (NYSE:NOW)

ServiceNow (NYSE:NOW) and SecureAlert (OTCMKTS:TRCK) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Institutional & Insider Ownership

87.2% of ServiceNow shares are held by institutional investors. Comparatively, 5.8% of SecureAlert shares are held by institutional investors. 0.4% of ServiceNow shares are held by insiders. Comparatively, 11.1% of SecureAlert shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares ServiceNow and SecureAlert”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServiceNow	$10.98 billion	17.51	$1.43 billion	$7.94	116.48
SecureAlert	$36.89 million	0.09	-$3.08 million	($0.12)	-2.29

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

Risk & Volatility

ServiceNow has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, SecureAlert has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ServiceNow and SecureAlert, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServiceNow	1	3	29	1	2.88
SecureAlert	0	0	0	0	0.00

ServiceNow presently has a consensus price target of $1,115.20, suggesting a potential upside of 20.58%. Given ServiceNow’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ServiceNow is more favorable than SecureAlert.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ServiceNow	13.78%	18.04%	8.81%
SecureAlert	-3.91%	-11.46%	3.48%

Summary

ServiceNow beats SecureAlert on 14 of the 15 factors compared between the two stocks.

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.

About SecureAlert

Track Group, Inc., together with its subsidiaries, designs, manufactures, and markets location tracking devices in the United States, Latin America, and internationally. The company's products include ReliAlert XC4, a GPS monitoring device; and ReliAlert XC 3, which enables agencies to track offender movements and communicate directly with offenders in real-time through on-board two/three-way voice communication technology. It also provides IntelliTrack, a secure state of the art device-agnostic platform; IntelliTrack Mobile, a mobile application of the Intellitrack software is available for Android and iOS devices; TrackerPAL, a cloud-based monitoring system; TrackerPAL Mobile, a mobile application of the TrackerPAL software for Android and iOS devices; data analytics services; and BACtrack, a smartphone-based remote alcohol monitoring system. In addition, the company offers Empower smartphone application that provides victim and survivor support by creating a mobile geo-zone around a survivor of domestic abuse and communicates with the offender's tracking device; Socrates 360, a platform that offers various content and service; SecureCuff steel bands; and RF Beacon, a self-contained and short-range transmitting station that provides a radio frequency signal communicating with assigned offender GPS devices, as well as product support services. Further, the company develops and sells various related software, services, accessories, networking solutions, and monitoring applications. The company was formerly known as SecureAlert, Inc. and changed its name to Track Group, Inc. in May 2015. Track Group, Inc. was incorporated in 1995 and is headquartered in Naperville, Illinois.