ServiceNow Inc (NOW)vsSPS Commerce Inc (SPSC)
NOW
ServiceNow Inc
$142.35
-0.32%
TECHNOLOGY · Cap: $137.02B
SPSC
SPS Commerce Inc
$82.00
-1.25%
TECHNOLOGY · Cap: $2.99B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 1807% more annual revenue ($14.73B vs $772.49M). NOW leads profitability with a 11.3% profit margin vs 10.1%. NOW appears more attractively valued with a PEG of 0.95. NOW earns a higher WallStSmart Score of 49/100 (D+).
NOW
Hold49
out of 100
Grade: D+
SPSC
Hold46
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+78.9%
Fair Value
$626.98
Current Price
$142.35
$484.63 discount
Margin of Safety
+71.2%
Fair Value
$237.87
Current Price
$82.00
$155.88 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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 11.8x book value
Distress zone — elevated risk
Operating margin of 4.1%
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 63.9%
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 : SPSC
The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score.
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 : SPSC
The primary concerns for SPSC are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
NOW profiles as a growth stock while SPSC is a value 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
NOW scores higher overall (49/100 vs 46/100) and 24.0% revenue growth. SPSC offers better value entry with a 71.2% margin of safety. Both earn "Hold" 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.
SPS Commerce Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SPS Commerce, Inc. provides cloud-based supply chain management solutions globally. The company is headquartered in Minneapolis, Minnesota.
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