Critical Analysis: Atos (OTCMKTS:AEXAY) versus ServiceNow (NYSE:NOW)

ServiceNow (NYSE:NOW) and Atos (OTCMKTS:AEXAY) are both large-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ServiceNow	13.66%	19.23%	9.30%
Atos	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServiceNow	$10.98 billion	17.39	$1.43 billion	$7.94	115.65
Atos	$11.57 billion	941.76	-$3.72 billion	N/A	N/A

ServiceNow has higher earnings, but lower revenue than Atos.

Analyst Ratings

This is a summary of current recommendations for ServiceNow and Atos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServiceNow	1	3	31	2	2.92
Atos	0	0	0	0	0.00

ServiceNow presently has a consensus target price of $1,159.66, suggesting a potential upside of 26.29%. Given ServiceNow’s stronger consensus rating and higher possible upside, research analysts plainly believe ServiceNow is more favorable than Atos.

Volatility & Risk

ServiceNow has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Atos has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Institutional & Insider Ownership

87.2% of ServiceNow shares are owned by institutional investors. 0.4% of ServiceNow shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

ServiceNow beats Atos on 10 of the 13 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 Atos

Atos SE provides digital transformation solutions and services worldwide. It offers advanced computing solutions; analytics, artificial intelligence, and automation solutions; cloud solutions; customer journey analytics and digital customer experience; decarbonization solutions; digital consulting; digital workplace solutions; edge computing and Internet of things solutions; and modern applications and platforms. The company also provides advance detection and response, data protection and governance, digital workplace security, IoT and OT security, trusted digital identities, and cybersecurity solutions; and infrastructure and foundation services. It serves financial services and insurance, healthcare and life sciences, manufacturing, public sector and defense, resources and services, and telecommunication and media industries. The company was incorporated in 1982 and is headquartered in Bezons, France.