WallStSmart

Adobe Systems Incorporated (ADBE)vsServiceNow Inc (NOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Adobe Systems Incorporated generates 81% more annual revenue ($25.20B vs $13.96B). ADBE leads profitability with a 28.7% profit margin vs 12.6%. ADBE appears more attractively valued with a PEG of 0.57. ADBE earns a higher WallStSmart Score of 74/100 (B).

ADBE

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 10.0Value: 9.3Quality: 6.0
Piotroski: 4/9Altman Z: 4.35

NOW

Buy

57

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 6.0Quality: 5.0
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADBEUndervalued (+49.7%)

Margin of Safety

+49.7%

Fair Value

$412.46

Current Price

$218.80

$193.66 discount

UndervaluedFair: $412.46Overvalued
NOWUndervalued (+83.5%)

Margin of Safety

+83.5%

Fair Value

$613.35

Current Price

$112.45

$500.90 discount

UndervaluedFair: $613.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADBE6 strengths · Avg: 9.7/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
63.0%10/10

Every $100 of equity generates 63 in profit

Operating MarginProfitability
33.8%10/10

Strong operational efficiency at 33.8%

Altman Z-ScoreHealth
4.3510/10

Safe zone — low bankruptcy risk

Market CapQuality
$82.03B9/10

Large-cap with strong market position

Profit MarginProfitability
28.7%9/10

Keeps 29 of every $100 in revenue as profit

NOW4 strengths · Avg: 8.5/10
Market CapQuality
$107.41B9/10

Large-cap with strong market position

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Free Cash FlowQuality
$1.53B8/10

Generating 1.5B in free cash flow

Areas to Watch

ADBE0 concerns · Avg: 0/10

No major concerns identified

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
9.9x4/10

Trading at 9.9x book value

EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ADBE

The strongest argument for ADBE centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.7% and operating margin at 33.8%. Revenue growth of 12.7% demonstrates continued momentum.

Bull Case : NOW

The strongest argument for NOW centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bear Case : ADBE

No major red flags identified for ADBE, but monitor valuation.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 62.0x leaves little room for execution misses.

Key Dynamics to Monitor

ADBE profiles as a mature stock while NOW is a growth play — different risk/reward profiles.

ADBE carries more volatility with a beta of 1.40 — expect wider price swings.

NOW is growing revenue faster at 22.1% — sustainability is the question.

ADBE generates stronger free cash flow (2.9B), providing more financial flexibility.

Bottom Line

ADBE scores higher overall (74/100 vs 57/100), backed by strong 28.7% margins and 12.7% revenue growth. NOW offers better value entry with a 83.5% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Adobe Systems Incorporated

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Adobe Inc. is an American multinational computer software company. Incorporated in Delaware and headquartered in San Jose, California, it has historically specialized in software for the creation and publication of a wide range of content, including graphics, photography, illustration, animation, multimedia, motion pictures and print. The company has expanded into digital marketing management software. Adobe has millions of users worldwide. Flagship products include: Photoshop image editing software, Adobe Illustrator vector-based illustration software, Adobe Acrobat Reader and the Portable Document Format (PDF), plus a host of tools primarily for audio-visual content creation, editing and publishing.

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ServiceNow Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.

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