ServiceNow (NYSE:NOW) vs. Motorsport Games (NASDAQ:MSGM) Head to Head Analysis

Motorsport Games (NASDAQ:MSGM – Get Rating) and ServiceNow (NYSE:NOW – Get Rating) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Motorsport Games	-257.60%	-140.22%	-88.56%
ServiceNow	4.49%	9.37%	3.58%

Analyst Ratings

This is a summary of recent recommendations and price targets for Motorsport Games and ServiceNow, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorsport Games	0	5	0	0	2.00
ServiceNow	2	1	25	0	2.82

Motorsport Games presently has a consensus price target of $3.53, indicating a potential downside of 56.86%. ServiceNow has a consensus price target of $517.47, indicating a potential upside of 17.34%. Given ServiceNow’s stronger consensus rating and higher possible upside, analysts clearly believe ServiceNow is more favorable than Motorsport Games.

Insider & Institutional Ownership

17.2% of Motorsport Games shares are owned by institutional investors. Comparatively, 86.3% of ServiceNow shares are owned by institutional investors. 3.0% of Motorsport Games shares are owned by company insiders. Comparatively, 0.3% of ServiceNow shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Motorsport Games has a beta of 2.84, indicating that its share price is 184% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Earnings and Valuation

This table compares Motorsport Games and ServiceNow’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Motorsport Games	$15.08 million	1.64	-$33.16 million	($32.59)	-0.25
ServiceNow	$7.25 billion	12.36	$325.00 million	$1.60	275.63

ServiceNow has higher revenue and earnings than Motorsport Games. Motorsport Games 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 Motorsport Games on 12 of the 14 factors compared between the two stocks.

About Motorsport Games

(Get Rating)

Motorsport Games Inc. develops and publishes multi-platform racing video games in the United States. It operates through Gaming and Esports segments. The company offers video games for game consoles, personal computer, and mobile platforms through various retail and digital channels, including full-game and downloadable content. It also organizes and facilitates esports tournaments, competitions, and events for its licensed racing games, as well as on behalf of third-party racing game developers and publishers. The company sells its video game products through various retail and digital channels. Motorsport Games Inc. was founded in 2018 and is headquartered in Miami, Florida. Motorsport Games Inc. operates as a subsidiary of Motorsport Network LLC.

About ServiceNow

(Get Rating)

ServiceNow, Inc. engages in the provision of enterprise cloud computing solutions. The firm delivers digital workflows on a single enterprise cloud platform called the Now Platform. Its product portfolio is focused on providing Information Technology, Employee and Customer workflows. The company was founded by Frederic B. Luddy in June 2004 and is headquartered in Santa Clara, CA.