ServiceNow Inc (NOW)vsWorkday Inc (WDAY)
NOW
ServiceNow Inc
$110.38
-2.55%
TECHNOLOGY · Cap: $121.21B
WDAY
Workday Inc
$135.96
+1.93%
TECHNOLOGY · Cap: $36.09B
Smart Verdict
WallStSmart Research — data-driven comparison
ServiceNow Inc generates 39% more annual revenue ($13.28B vs $9.55B). NOW leads profitability with a 13.2% profit margin vs 7.3%. WDAY appears more attractively valued with a PEG of 0.51. WDAY earns a higher WallStSmart Score of 64/100 (C+).
NOW
Buy56
out of 100
Grade: C
WDAY
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-454.2%
Fair Value
$20.44
Current Price
$110.38
$89.94 premium
Margin of Safety
-18.8%
Fair Value
$121.68
Current Price
$135.96
$14.28 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 62.9% YoY
Growing faster than its price suggests
Generating 1.2B in free cash flow
Areas to Watch
Trading at 8.9x book value
3.4% earnings growth
Distress zone — elevated risk
Weak financial health signals
7.3% margin — thin
Premium valuation, high expectations priced in
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 1.10 suggests the stock is reasonably priced for its growth.
Bull Case : WDAY
The strongest argument for WDAY centers on EPS Growth, PEG Ratio, Free Cash Flow. Revenue growth of 14.5% demonstrates continued momentum. PEG of 0.51 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 68.8x leaves little room for execution misses.
Bear Case : WDAY
The primary concerns for WDAY are Profit Margin, P/E Ratio. A P/E of 52.0x leaves little room for execution misses.
Key Dynamics to Monitor
NOW profiles as a growth stock while WDAY is a value play — different risk/reward profiles.
WDAY carries more volatility with a beta of 1.17 — 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
WDAY scores higher overall (64/100 vs 56/100) and 14.5% 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.
Workday Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Workday, Inc. provides business applications in the cloud worldwide. The company is headquartered in Pleasanton, California.
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