ServiceNow Inc (NOW)vsShopify Inc (SHOP)
NOW
ServiceNow Inc
$105.12
-4.15%
TECHNOLOGY · Cap: $146.78B
SHOP
Shopify Inc
$157.49
-5.63%
TECHNOLOGY · Cap: $215.16B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 11% more annual revenue ($14.73B vs $13.27B). SHOP leads profitability with a 14.5% profit margin vs 11.3%. NOW appears more attractively valued with a PEG of 1.01. SHOP earns a higher WallStSmart Score of 63/100 (C+).
NOW
Hold47
out of 100
Grade: D+
SHOP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.4%
Fair Value
$617.23
Current Price
$105.12
$512.11 discount
Margin of Safety
+22.4%
Fair Value
$150.73
Current Price
$157.49
$6.76 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Revenue surging 24.0% year-over-year
Mega-cap, among the largest globally
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 8.7x book value
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
Expensive relative to growth rate
Trading at 16.0x book value
Weak financial health signals
Premium valuation, high expectations priced in
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 : SHOP
The strongest argument for SHOP centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum.
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 : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 112.0x leaves little room for execution misses.
Key Dynamics to Monitor
SHOP carries more volatility with a beta of 2.63 — expect wider price swings.
SHOP is growing revenue faster at 33.7% — sustainability is the question.
SHOP generates stronger free cash flow (654M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SHOP scores higher overall (63/100 vs 47/100) and 33.7% revenue growth. NOW offers better value entry with a 74.4% margin of safety. Both earn "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.
Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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