ServiceNow Inc (NOW)vsPure Storage Inc (PSTG)
NOW
ServiceNow Inc
$110.38
-2.55%
TECHNOLOGY · Cap: $116.47B
PSTG
Pure Storage Inc
$62.63
-4.31%
TECHNOLOGY · Cap: $20.68B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 263% more annual revenue ($13.28B vs $3.66B). NOW leads profitability with a 13.2% profit margin vs 5.1%. NOW appears more attractively valued with a PEG of 1.09. PSTG earns a higher WallStSmart Score of 59/100 (C).
NOW
Buy56
out of 100
Grade: C
PSTG
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-440.0%
Fair Value
$20.44
Current Price
$110.38
$89.94 premium
Margin of Safety
-195.4%
Fair Value
$25.74
Current Price
$62.63
$36.89 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Revenue surging 20.7% year-over-year
Generating 2.0B in free cash flow
Earnings expanding 140.6% YoY
Revenue surging 20.4% year-over-year
Areas to Watch
Trading at 8.9x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
Trading at 14.3x book value
5.1% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, Revenue Growth, Free Cash Flow. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bull Case : PSTG
The strongest argument for PSTG centers on EPS Growth, Revenue Growth. Revenue growth of 20.4% demonstrates continued momentum. PEG of 1.47 suggests the stock is reasonably priced for its growth.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 66.1x leaves little room for execution misses.
Bear Case : PSTG
The primary concerns for PSTG are Price/Book, Profit Margin, P/E Ratio. A P/E of 113.9x leaves little room for execution misses.
Key Dynamics to Monitor
PSTG carries more volatility with a beta of 1.33 — expect wider price swings.
NOW is growing revenue faster at 20.7% — sustainability is the question.
NOW generates stronger free cash flow (2.0B), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PSTG scores higher overall (59/100 vs 56/100) and 20.4% revenue growth. Both earn "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.
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.
Pure Storage Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Pure Storage, Inc. provides data storage technology and solutions in the United States and internationally. The company is headquartered in Mountain View, California.
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