ServiceNow Inc (NOW)vsPaylocity Holding Corporation (PCTY)
NOW
ServiceNow Inc
$132.53
+1.04%
TECHNOLOGY · Cap: $137.02B
PCTY
Paylocity Holding Corporation
$141.66
-0.84%
TECHNOLOGY · Cap: $7.95B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 732% more annual revenue ($14.73B vs $1.77B). PCTY leads profitability with a 15.2% profit margin vs 11.3%. NOW appears more attractively valued with a PEG of 0.95. PCTY earns a higher WallStSmart Score of 65/100 (B-).
NOW
Hold49
out of 100
Grade: D+
PCTY
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+78.9%
Fair Value
$626.98
Current Price
$132.53
$494.45 discount
Margin of Safety
+62.0%
Fair Value
$283.03
Current Price
$141.66
$141.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Growing faster than its price suggests
Revenue surging 24.0% year-over-year
Every $100 of equity generates 22 in profit
Conservative balance sheet, low leverage
Earnings expanding 27.6% YoY
Areas to Watch
Trading at 10.9x book value
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
Moderate valuation
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 0.95 suggests the stock is reasonably priced for its growth.
Bull Case : PCTY
The strongest argument for PCTY centers on Return on Equity, Debt/Equity, EPS Growth. Profitability is solid with margins at 15.2% and operating margin at 19.1%. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : NOW
The primary concerns for NOW are Price/Book, Altman Z-Score, Operating Margin. A P/E of 81.8x leaves little room for execution misses.
Bear Case : PCTY
The primary concerns for PCTY are P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
NOW profiles as a growth stock while PCTY is a mature play — different risk/reward profiles.
NOW carries more volatility with a beta of 0.97 — 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
PCTY scores higher overall (65/100 vs 49/100), backed by strong 15.2% margins and 11.0% revenue growth. NOW offers better value entry with a 78.9% 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.
Paylocity Holding Corporation
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Paylocity Holding Corporation provides cloud-based payroll and human capital management software solutions for midsize organizations in the United States. The company is headquartered in Schaumburg, Illinois.
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