ServiceNow Inc (NOW)vsPaycom Software, Inc. (PAYC)
NOW
ServiceNow Inc
$150.13
-26.97%
TECHNOLOGY · Cap: $146.78B
PAYC
Paycom Software, Inc.
$262.79
+0.32%
TECHNOLOGY · Cap: $11.34B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 588% more annual revenue ($14.73B vs $2.14B). PAYC leads profitability with a 22.8% profit margin vs 11.3%. NOW appears more attractively valued with a PEG of 1.01. PAYC earns a higher WallStSmart Score of 74/100 (B).
NOW
Hold47
out of 100
Grade: D+
PAYC
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.4%
Fair Value
$617.23
Current Price
$150.13
$467.10 discount
Margin of Safety
+74.5%
Fair Value
$465.15
Current Price
$262.79
$202.36 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Revenue surging 24.0% year-over-year
Every $100 of equity generates 85 in profit
Strong operational efficiency at 31.7%
Keeps 23 of every $100 in revenue as profit
Earnings expanding 48.1% YoY
Areas to Watch
Trading at 12.4x book value
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
Moderate valuation
Trading at 20.0x book value
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bull Case : PAYC
The strongest argument for PAYC centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 22.8% and operating margin at 31.7%. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bear Case : NOW
The primary concerns for NOW are Price/Book, Altman Z-Score, Operating Margin. A P/E of 88.7x leaves little room for execution misses.
Bear Case : PAYC
The primary concerns for PAYC are P/E Ratio, Price/Book, Debt/Equity. Debt-to-equity of 1.72 is elevated, increasing financial risk.
Key Dynamics to Monitor
NOW profiles as a growth stock while PAYC is a mature play — different risk/reward profiles.
NOW carries more volatility with a beta of 0.99 — expect wider price swings.
NOW is growing revenue faster at 24.0% — sustainability is the question.
NOW generates stronger free cash flow (473M), providing more financial flexibility.
Bottom Line
PAYC scores higher overall (74/100 vs 47/100), backed by strong 22.8% margins. NOW offers better value entry with a 74.4% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Paycom Software, Inc.
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paycom Software, Inc., known simply as Paycom, is an American online payroll and human resource technology provider based in Oklahoma City, Oklahoma.
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