Critical Review: ServiceNow (NYSE:NOW) and Intrusion (NASDAQ:INTZ)

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

Risk and Volatility

ServiceNow has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Intrusion has a beta of -1.61, meaning that its share price is 261% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ServiceNow	9.36%	15.17%	6.70%
Intrusion	-191.24%	-178.06%	-99.59%

Institutional & Insider Ownership

87.2% of ServiceNow shares are held by institutional investors. Comparatively, 19.4% of Intrusion shares are held by institutional investors. 0.3% of ServiceNow shares are held by company insiders. Comparatively, 10.1% of Intrusion shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServiceNow	3	3	36	1	2.81
Intrusion	1	2	1	0	2.00

ServiceNow presently has a consensus price target of $154.50, indicating a potential upside of 51.61%. Intrusion has a consensus price target of $5.25, indicating a potential upside of 708.94%. Given Intrusion’s higher possible upside, analysts plainly believe Intrusion is more favorable than ServiceNow.

Valuation & Earnings

This table compares ServiceNow and Intrusion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServiceNow	$13.28 billion	7.97	$1.75 billion	$1.39	73.32
Intrusion	$5.79 million	2.75	-$9.06 million	($0.55)	-1.18

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

Summary

ServiceNow beats Intrusion on 13 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 Intrusion

Intrusion Inc., a cybersecurity company in the United States. The company offers its customers access to threat intelligence database, which contains the historical data, known associations, and reputational behavior of Internet Protocol addresses. It offers INTRUSION Shield, a zero trust reputation-based Software as a Service solution that inspects and kills dangerous network connections. The company also provides INTRUSION TraceCop, a big data tool that contains an inventory of network selectors and enrichments to support forensic investigations; and INTRUSION Savant, a network monitoring solution that uses the data available in TraceCop to identify suspicious traffic in real-time. In addition, it engages in the provision of pre-and post-sales support services, such as network security design, system installation, and technical consulting services. The company serves US federal government entities, state and local government entities, and companies ranging from mid-market to large enterprises through a direct sales force and value-added resellers. The company was formerly known as Intrusion.com, Inc. and changed its name to Intrusion Inc. in November 2001. Intrusion Inc. was founded in 1983 and is headquartered in Plano, Texas.