WallStSmart

Clearwater Analytics Holdings Inc (CWAN)vsServiceNow Inc (NOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ServiceNow Inc generates 1591% more annual revenue ($13.96B vs $825.73M). NOW leads profitability with a 12.6% profit margin vs -5.8%. NOW appears more attractively valued with a PEG of 0.89. NOW earns a higher WallStSmart Score of 59/100 (C).

CWAN

Hold

47

out of 100

Grade: D+

Growth: 10.0Profit: 2.5Value: 3.7Quality: 6.0
Piotroski: 1/9Altman Z: 1.63

NOW

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 6.7Quality: 4.0
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWANSignificantly Overvalued (-17.6%)

Margin of Safety

-17.6%

Fair Value

$20.06

Current Price

$24.56

$4.50 premium

UndervaluedFair: $20.06Overvalued
NOWUndervalued (+80.8%)

Margin of Safety

+80.8%

Fair Value

$602.92

Current Price

$115.76

$487.16 discount

UndervaluedFair: $602.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWAN2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
74.4%10/10

Revenue surging 74.4% year-over-year

EPS GrowthGrowth
202.8%10/10

Earnings expanding 202.8% YoY

NOW3 strengths · Avg: 8.3/10
Market CapQuality
$98.45B9/10

Large-cap with strong market position

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Areas to Watch

CWAN4 concerns · Avg: 3.5/10
PEG RatioValuation
1.784/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.634/10

Distress zone — elevated risk

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
10.2x4/10

Trading at 10.2x book value

EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CWAN

The strongest argument for CWAN centers on Revenue Growth, EPS Growth. Revenue growth of 74.4% demonstrates continued momentum.

Bull Case : NOW

The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bear Case : CWAN

The primary concerns for CWAN are PEG Ratio, Altman Z-Score, Operating Margin.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 60.4x leaves little room for execution misses.

Key Dynamics to Monitor

CWAN profiles as a hypergrowth stock while NOW is a growth play — different risk/reward profiles.

NOW carries more volatility with a beta of 0.96 — expect wider price swings.

CWAN is growing revenue faster at 74.4% — sustainability is the question.

NOW generates stronger free cash flow (473M), providing more financial flexibility.

Bottom Line

NOW scores higher overall (59/100 vs 47/100) and 22.1% revenue growth. 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.

Clearwater Analytics Holdings Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Clearwater Analytics Holdings Inc. (CWAN) is a premier provider of cutting-edge cloud-based investment accounting and analytics solutions tailored for investment firms, insurance companies, and global corporations. The company's sophisticated platform bolsters portfolio management and reporting, allowing clients to make strategic investment decisions while ensuring operational efficiency and adherence to regulatory requirements. With its strategic positioning in the dynamic financial technology sector, Clearwater is adept at harnessing the increasing need for integrated investment solutions, thereby fostering continued growth and innovation within the financial services landscape.

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.

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