Reviewing 3D Systems (NYSE:DDD) & ServiceNow (NYSE:NOW)

3D Systems (NYSE:DDD) and ServiceNow (NYSE:NOW) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Valuation and Earnings

This table compares 3D Systems and ServiceNow’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
3D Systems $557.24 million 6.58 -$149.59 million ($0.40) -73.25
ServiceNow $4.52 billion 21.37 $118.50 million $1.09 448.74

ServiceNow has higher revenue and earnings than 3D Systems. 3D 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 & Insider Ownership

66.3% of 3D Systems shares are held by institutional investors. Comparatively, 85.7% of ServiceNow shares are held by institutional investors. 3.6% of 3D Systems shares are held by company insiders. Comparatively, 0.7% of ServiceNow shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for 3D Systems and ServiceNow, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
3D Systems 1 5 1 0 2.00
ServiceNow 0 2 27 1 2.97

3D Systems currently has a consensus price target of $25.50, suggesting a potential downside of 12.97%. ServiceNow has a consensus price target of $605.39, suggesting a potential upside of 23.77%. Given ServiceNow’s stronger consensus rating and higher probable upside, analysts clearly believe ServiceNow is more favorable than 3D Systems.

Risk & Volatility

3D Systems has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares 3D Systems and ServiceNow’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
3D Systems -15.10% -4.51% -2.78%
ServiceNow 3.15% 9.32% 3.24%

Summary

ServiceNow beats 3D Systems on 13 of the 15 factors compared between the two stocks.

3D Systems Company Profile

3D Systems Corporation, through its subsidiaries, provides 3D printing and digital manufacturing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers 3D printers, such as stereolithography, selective laser sintering, direct metal printing, multi jet printing, and color jet printers that transform digital data input generated by 3D design software, computer aided design (CAD) software, or other 3D design tools into printed parts under the Accura, DuraForm, LaserForm, CastForm, and VisiJet brand names. It also develops, blends, and markets various print materials, such as plastic, nylon, metal, composite, elastomeric, wax, polymeric dental, and Class IV bio-compatible materials. In addition, the company provides digital design tools, including software, scanners, and haptic devices, as well as solutions for product design, mold and die design, 3D scan-to-print, reverse engineering, production machining, metrology, and inspection under the Geomagic brand. Further, it offers 3D Sprint and 3DXpert, a proprietary software to prepare and optimize CAD data and manage the additive manufacturing processes, which provides automated support building and placement, build platform management, and print queue management; and 3D virtual reality simulators and simulator modules for medical applications under the Simbionix brand, and digitizing scanners for medical and mechanical applications. Additionally, the company provides warranty, maintenance, and training services; on-demand manufacturing solutions; and software and precision healthcare services. It primarily serves companies and small and midsize businesses in medical, dental, automotive, aerospace, durable good, government, defense, technology, jewelry, electronic, education, consumer good, energy, and other industries through direct sales force, as well as partner channels and distributors. The company was founded in 1986 and is headquartered in Rock Hill, South Carolina.

ServiceNow Company Profile

ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform that offers workflow automation, artificial intelligence, machine learning, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools. The company also provides information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; IT business management product suite to manage IT priorities; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT Asset Management to automate IT asset lifecycles; and enterprise development operations product for developers' toolchain. In addition, it offers security incident management, threat enrichment intelligence, vulnerability response management, and security incident intelligence sharing security operation products; governance, risk, and compliance product to create policies and controls; human resources, legal, and workplace service delivery products; safe workplace applications; customer service management product; and field service management applications. Further, it provides App Engine product; IntegrationHub enables application to extend workflows; and professional, training, and customer support services. It serves government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products. It sells its products through direct sales team and resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. The company was incorporated in 2004 and is headquartered in Santa Clara, California.

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