Financial Comparison: ServiceNow (NYSE:NOW) versus Cipher Mining (NASDAQ:CIFR)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cipher Mining	$191.09 million	29.36	-$822.24 million	($2.86)	-4.73
ServiceNow	$14.73 billion	9.87	$1.75 billion	$1.60	87.90

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cipher Mining	-585.75%	-156.28%	-21.29%
ServiceNow	11.34%	16.45%	7.68%

Insider and Institutional Ownership

12.3% of Cipher Mining shares are held by institutional investors. Comparatively, 87.2% of ServiceNow shares are held by institutional investors. 3.1% of Cipher Mining shares are held by company insiders. Comparatively, 0.3% of ServiceNow shares are held 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.

Analyst Recommendations

This is a breakdown of current recommendations for Cipher Mining and ServiceNow, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cipher Mining	1	3	16	1	2.81
ServiceNow	2	4	35	1	2.83

Cipher Mining presently has a consensus price target of $28.86, suggesting a potential upside of 113.47%. ServiceNow has a consensus price target of $146.46, suggesting a potential upside of 4.14%. Given Cipher Mining’s higher probable upside, research analysts clearly believe Cipher Mining is more favorable than ServiceNow.

Volatility & Risk

Cipher Mining has a beta of 3.2, suggesting that its share price is 220% more volatile than the S&P 500. Comparatively, ServiceNow has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Summary

ServiceNow beats Cipher Mining on 10 of the 14 factors compared between the two stocks.

About Cipher Mining

Cipher Mining Inc., together with its subsidiaries, engages in the development and operation of industrial scale bitcoin mining data centers in the United States. The company was incorporated in 2020 and is based in New York, New York. Cipher Mining Inc. operates as a subsidiary of Bitfury Holding B.V.

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.