ServiceNow Inc (NOW)vsSPS Commerce Inc (SPSC)
NOW
ServiceNow Inc
$112.45
+2.05%
TECHNOLOGY · Cap: $131.65B
SPSC
SPS Commerce Inc
$55.47
-1.12%
TECHNOLOGY · Cap: $2.02B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 1732% more annual revenue ($13.96B vs $762.08M). NOW leads profitability with a 12.6% profit margin vs 11.9%. NOW appears more attractively valued with a PEG of 1.32. NOW earns a higher WallStSmart Score of 54/100 (C-).
NOW
Buy54
out of 100
Grade: C-
SPSC
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.6%
Fair Value
$613.35
Current Price
$112.45
$500.90 discount
Margin of Safety
+70.9%
Fair Value
$235.52
Current Price
$55.47
$180.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Conservative balance sheet, low leverage
Revenue surging 22.1% year-over-year
Generating 1.5B in free cash flow
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Trading at 9.9x book value
2.3% earnings growth
Distress zone — elevated risk
Weak financial health signals
Weak financial health signals
Expensive relative to growth rate
Earnings declined 9.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : NOW
The strongest argument for NOW centers on Market Cap, Debt/Equity, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 1.32 suggests the stock is reasonably priced for its growth.
Bull Case : SPSC
The strongest argument for SPSC centers on Debt/Equity, Altman Z-Score, Price/Book.
Bear Case : NOW
The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 76.0x leaves little room for execution misses.
Bear Case : SPSC
The primary concerns for SPSC are Piotroski F-Score, 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 0.82 — expect wider price swings.
NOW is growing revenue faster at 22.1% — sustainability is the question.
NOW generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
NOW scores higher overall (54/100 vs 47/100) and 22.1% revenue growth. SPSC offers better value entry with a 70.9% 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.
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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