WallStSmart

ServiceNow Inc (NOW)vsVertex (VERX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ServiceNow Inc generates 1674% more annual revenue ($13.28B vs $748.44M). NOW leads profitability with a 13.2% profit margin vs 1.0%. NOW trades at a lower P/E of 62.7x. NOW earns a higher WallStSmart Score of 56/100 (C).

NOW

Buy

56

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 4.7Quality: 3.8
Piotroski: 1/9Altman Z: 1.65

VERX

Avoid

29

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 3.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NOWSignificantly Overvalued (-404.2%)

Margin of Safety

-404.2%

Fair Value

$20.44

Current Price

$103.06

$82.62 premium

UndervaluedFair: $20.44Overvalued
VERXSignificantly Overvalued (-4651.9%)

Margin of Safety

-4651.9%

Fair Value

$0.27

Current Price

$11.66

$11.39 premium

UndervaluedFair: $0.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NOW3 strengths · Avg: 8.3/10
Market CapQuality
$110.42B9/10

Large-cap with strong market position

Revenue GrowthGrowth
20.7%8/10

Revenue surging 20.7% year-over-year

Free Cash FlowQuality
$2.00B8/10

Generating 2.0B in free cash flow

VERX0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

EPS GrowthGrowth
3.4%4/10

3.4% earnings growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

VERX4 concerns · Avg: 3.0/10
Market CapQuality
$1.92B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.3%3/10

ROE of 3.3% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

Comparative Analysis Report

WallStSmart Research

Bull 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 1.06 suggests the stock is reasonably priced for its growth.

Bull Case : VERX

VERX has a balanced fundamental profile.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 62.7x leaves little room for execution misses.

Bear Case : VERX

The primary concerns for VERX are Market Cap, Return on Equity, Profit Margin. A P/E of 300.5x leaves little room for execution misses. Thin 1.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

NOW profiles as a growth stock while VERX is a value play — different risk/reward profiles.

NOW carries more volatility with a beta of 1.02 — 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.

Bottom Line

NOW scores higher overall (56/100 vs 29/100) and 20.7% revenue growth. Both earn "Buy" and "Avoid" 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.

Vertex

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Vertex, Inc. provides tax technology solutions for corporations in the retail, communications, leasing, and manufacturing industries in the United States and internationally. The company is headquartered in King of Prussia, Pennsylvania.

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